PRMIA Exam 8004 Topic 1 Question 21 Discussion

Actual exam question for PRMIA's 8004 exam

Question #: 21
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 Emilio at Apr 25, 2024, 10:52 PM

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Launa

5 months ago

I chose B. Reporting to regulators sounded off to me.

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Jerlene

5 months ago

I went with A. Keeping high revenue generators is crucial.

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Lawrence

6 months ago

Really? I thought D made the most sense. Compliance and market conditions.

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Alida

6 months ago

Yeah, the options all seem somewhat correct. I was leaning towards C.

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Launa

6 months ago

It was tricky. I think it's about balancing risk and reward.

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Lemuel

7 months ago

What did you think about that question on director's compensation review?

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Thomasena

7 months ago

Yes, it's also crucial to consider competitive market conditions

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Myra

7 months ago

I agree, it's important to ensure compliance and report highly compensated positions

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Rosio

7 months ago

I think the answer is B)

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