Question

A sign that ethics has become a primary concern for boards of directors is that

a) directors are more often chosen for their political connections than for their expertise
b) modern executive compensation is closely linked to the firm's employee retention rate.
c) poor financial performance is the most common reason for CEOs to be fired

Answer 1

A sign that ethics has become a primary concern for boards of directors is that modern executive compensation is closely linked to the firm's employee retention rate. Option b

Step-by-step explanation:

A sign that ethics has become a primary concern for boards of directors is that modern executive compensation is closely linked to the firm's employee retention rate.

Traditionally, executive compensation was primarily based on financial performance metrics such as profitability and shareholder returns. However, in recent years, there has been a growing recognition that ethical behavior and responsible management are also critical for long-term success.

By tying executive compensation to employee retention, boards of directors incentivize executives to create a positive and ethical work environment that promotes employee satisfaction and engagement. This shift in executive compensation practices reflects a broader recognition that ethical conduct is essential for maintaining stakeholder trust and ensuring the long-term sustainability of the organization. Option b