Quiz on Executive Pay

Which of the below is NOT one of the main purposes of Executive Pay?

• To attract and retain executives with the skills, experience and behavioral profile necessary to succeed in the position
• To ensure that the executive is being remunerated fairly
• To motivate executives to perform in a manner consistent with the company’s strategy and risk-profile
• To boost profit generation of the company

Which one of these statements is NOT in line with the conservative perspective on Executive Pay?

• CEOs are crucial for the company's success
• CEOs should be assigned more credit (or blame) for good (or poor) company performance
• CEOs are limited by external circumstances
• CEOs have a larger economic value due to their perceived potential contribution

The board of directors at Company X believed that the CEO's pay should be determined solely by his performance and the company's profitability. They approved a CEO pay package that was significantly higher than industry standards, based on the CEO's successful track record of increasing profits and shareholder value. Is the board more liberal or conservative?

• The board of directors are more conservative since they value CEOs more than liberal boards would

• The board of directors are more liberal since they value CEOs more than conservative boards would

KLM top executive Ben Smith received a bonus of over €3 million due to achieving sustainability targets which resulted in positive consequences for the environment and society, despite the company making a billion-dollar loss in 2021. Is this morally right or wrong according to Consequentialism/Utilitarianism?

• Morally right

• Morally wrong

KLM top executive Ben Smith received an annual compensation which was almost 300 times the compensation of an average worker at KLM. Is this morally right or wrong according to Deontology?

• Morally right

• Morally wrong