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Author Question: When companies hire new CEOs from other companies, how do they compensate them? A) approximately ... (Read 93 times)

londonang

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on: Jul 7, 2018
When companies hire new CEOs from other companies, how do they compensate them?
 
  A) approximately the same as individuals who are promoted to CEO from within the company
  B) substantially more than individuals who are promoted to CEO from within the company
  C) substantially less than individuals who are promoted to CEO from within the company
  D) at least 50 times the average median employee salary within the company

Question 2

XYZ Pharmaceuticals recently announced that the clinical trials for a cancer drug failed to cure the illness. This announcement led to a dramatic decrease in the stock value of the company.
 
  The company hired a new CEO two years ago when the clinical trials for this drug had already initiated. Which one of the following is true about the compensation of the CEO of XYZ Pharmaceuticals?
  A) The CEO should receive lower compensation since shareholder returns have been declining.
  B) The CEO was not involved in the decision of the failed initiative; therefore he/she should not receive lower compensation.
  C) Each company handles this situation differently.
  D) The compensation of this CEO depends only on pretax profit margins.
Strategic Compensation: A Human Resource Management Approach ¦ Martocchio ¦ 10th Edition
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maya.nigrin17@yahoo.com

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Reply #1 on: Jul 7, 2018
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londonang

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Reply #2 on: Jul 7, 2018
Thank you


maya.nigrin17@yahoo.com

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Reply #3 on: Jul 7, 2018
No problemo


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