PRMIA Exam 8004 Topic 1 Question 17 Discussion

Actual exam question for PRMIA's 8004 exam

Question #: 17
Topic #: 1

Boards of Directors, including Audit and Risk Committees must review thoroughly compensation plans of potentially "highly compensated positions" for:

I competitive market conditions

II ensuring compliance with their corporate risk appetite and fiduciary responsibility to shareholders

III ensuring any discretionary bonus plans are geared towards keeping high income / revenue generators

IV reporting all such personnel to the local regulator

AII, III and IV only

BI, II and IV only

CAll of the above

DI and II only

Show Suggested Answer

Suggested Answer: D

by Lenna at Feb 12, 2024, 12:25 PM

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Hailey

5 months ago

I see your point, but I still think it's important to report all highly compensated personnel to the local regulator, so answer C) All of the above makes sense to me.

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Brock

5 months ago

I believe the answer is B) I, II and IV only because those are the key factors for reviewing compensation plans.

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Skye

5 months ago

I agree with you, I also think it's important for Boards to review compensation plans thoroughly.

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Alexia

5 months ago

I think the answer is C) All of the above because all the options seem important for the Board of Directors to consider.

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Trina

6 months ago

I would go with B) I, II and IV only, as competitive market conditions and compliance with risk appetite seem crucial.

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Raymon

6 months ago

I believe A) II, III and IV only makes more sense because reporting to the regulator might not always be necessary.

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Franchesca

6 months ago

I agree with Marjory, all the options mentioned are important for reviewing compensation plans.

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Marjory

7 months ago

I think the answer is C) All of the above.

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