In most corporations the salaries of executives

Answer choices

1. A

   Unrelated to Goal1% picked this

   most corporate executives, thanks to their generous salaries, are not financially dependent on money earned

   We need an answer to be saying that this method won't work because the board members will be thinking, "the higher I set this CEO's salary, the higher my salary might one day be". This is saying that most CEO's don't sit on boards of directors for the sake of the extra part-time paycheck.

   1%
2. B

   Unrelated to Goal1% picked this

   most corporate executive might be less generous in setting their own salaries than the board members

   We need an answer to be saying that this method won't work because the board members will be thinking, "the higher I set this CEO's salary, the higher my salary might one day be". This is saying that most CEO's would set a lower salary for themselves than the board does.

   1%
3. C

   Correct87% picked this

   many board members might let their self- interest as executives interfere with properly discharging their role, as board

   Why this is right

   We need an answer to be saying that this method won't work because the board members will be thinking, "the higher I set this CEO's salary, the higher my salary might one day be". This is saying that board members would set the CEO's salary based on this self-interested calculation. They're thinking about how a high CEO salary could affect their salary at their real job, as executives of other companies. As a board member of Company X, though, they're supposed to be thinking about how a high CEO salary might affect the profitability of Company X.

   Skill tested: Method · how this choice captures the argument's function is the move to repeat next time.

   87%
4. D

   Contradicted8% picked this

   many board members who set executives’ salaries unreasonably high do so because they happen to be on the board of a corporation of which

   This is close, but it's saying that board members are also board members at other companies, where they hope to one day be executives. The passage was saying that the board members are actually executives at other companies, (where they hope to have their salary raised, in comparison to this new CEO pay benchmark they are helping to set at Company X).

   8%
5. E

   Unrelated to Goal3% picked this

   many board members are remunerated generously and wish to protect this source of income by pleasing the executives to whom they owe

   We need an answer to be saying that this method won't work because the board members will be thinking, "the higher I set this CEO's salary, the higher my salary might one day be". This is saying that board members are so grateful for this plush board member gig that they reward the CEO who appointed them there with high pay.

   3%