Question

Some support high executive compensation because of which reasons?

A) Attracting and retaining top talent
B) Encouraging executives to take risks for company growth
C) Aligning executive interests with shareholder value
D) Minimizing income inequality within the organization

Answer 1

Reasons for supporting high executive compensation include attracting and retaining top talent, encouraging risk-taking, and aligning executive interests with shareholder value.

Step-by-step explanation:

Some reasons why some support high executive compensation are:

1. Attracting and retaining top talent: High executive compensation can help attract and retain highly skilled and experienced executives who can contribute to the success of the company.
2. Encouraging executives to take risks for company growth: When executives receive high compensation, they may be more willing to take risks in order to drive company growth and increase shareholder value.
3. Aligning executive interests with shareholder value: Offering high executive compensation can align the interests of executives with the interests of shareholders, as executives may prioritize maximizing shareholder value in order to earn their high compensation.