In May 2014, the typical CEO earned approximately how much more annually than fast food cooks?
A) 100 times more
B) 120 times more
C) 160 times more
D) approximately 180 times more
Question 2Which of the following arguments do labor unions use regarding the substantial pay discrepancies between CEOs and non CEOs?
A) Discrepancies are socially unjust and promote economic inequality.
B) Discrepancies contribute to labor strikes.
C) Discrepancies undermine global competitiveness.
D) Discrepancies decrease which promotes effective companies seek to recruitment and retention.
Question 3When companies hire new CEOs from other companies, how do they compensate them?
A) approximately the same as individuals who are promoted to CEO from within the company
B) substantially more than individuals who are promoted to CEO from within the company
C) substantially less than individuals who are promoted to CEO from within the company
D) at least 50 times the average median employee salary within the company
Question 4XYZ Pharmaceuticals recently announced that the clinical trials for a cancer drug failed to cure the illness. This announcement led to a dramatic decrease in the stock value of the company.
The company hired a new CEO two years ago when the clinical trials for this drug had already initiated. Which one of the following is true about the compensation of the CEO of XYZ Pharmaceuticals?
A) The CEO should receive lower compensation since shareholder returns have been declining.
B) The CEO was not involved in the decision of the failed initiative; therefore he/she should not receive lower compensation.
C) Each company handles this situation differently.
D) The compensation of this CEO depends only on pretax profit margins.
Question 5A provision of the ________ established the say-on-pay practice.
FIll in the blank with correct word.
Question 6What was the median annual earnings for all U.S. civilian workers in 2014?
A) 47,230
B) 51,980
C) 46,230
D) 41,778
Question 7The SEC's Summary Compensation Table contains data covering how many years?
A) 3
B) 5
C) 7
D) 10
Question 8The SEC requires compensation information about the CEO and how many of the highest paid executives?
A) 10
B) 7
C) 4
D) 2
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