Research shows that increased firm size and greater levels of diversification are correlated with increased executive compensation.

A. False
B. True

Question

28-07-2024
Business

Answered

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Research shows that increased firm size and greater levels of diversification are correlated with increased executive compensation.

A. False
B. True

Sagot :

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GinnyAnsweridn GinnyAnsweridn · Answer 1 · 2024-07-28T19:01:59-04:00

Final answer:

Increased firm size and diversification are correlated with higher executive compensation.

Explanation:

True. Increased firm size and greater levels of diversification are indeed correlated with increased executive compensation. This correlation can be attributed to reasons such as the risks associated with leading large companies, the tournament theory incentivizing high executive pay, and the link between executive compensation and company performance.

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Sagot :

Final answer:

Explanation:

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