End of Chapter Review
MyManagementLab
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Summary
Learning Objective 1: Executive compensation is determined by a company’s board of directors who are usually high-level executives, either within and outside the company, as well as prominent community members, such as lawyers. The recommendation for executive compensation comes from a compensation consultant, who is often hired by the CEO. Compensation for nonexecutive employees is typically based on market rates or from the negotiations between union and management, and is adjusted according to performance or acquisition of ...
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