Which of the following statements about management compensation is false? A. Mem

Question

Which of the following statements about management compensation is false?

A. Members of management are often paid based on the earnings of the company.

B. A public corporation must file documents with SEC, disclosing the components of compensation and the criteria used to remunerate top executives.

C. Using a single performance measure such as earnings per share serves as the best basis for determining management compensation.

D. The Sarbanes-Oxley Act requires a public corporation to establish a committee made up of independent directors appointed by the board of directors to determine the compensation of top executives.

Explanation / Answer

C statement is false because earning per share is not only the basis of management compensation as there are lot of factors considered like performance of the company, expansion plans, growth of company.

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