Question

Which of the following scenarios gives rise to conflicts of interests in corporate governance? a. Senior executives determining the compensation received by board members b. Board members hand-selecting employees in their company c. A CEO not chairing the board of directors d. The absence of cross-fertilization of boards

Answer 1

The correct answer is letter "A": Senior executives determining the compensation received by board members.

Step-by-step explanation:

Conflicts of interest typically arise within an organization when the Board members drive the direction of the company in their favor and not of the organization. This scenario leads to discussions between the Board members and the firm's managers (high-rank executives) because the last ones are seeking constantly the well-being of the organization.