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PRMIA Exam 8004 Topic 1 Question 26 Discussion

Actual exam question for PRMIA's Case Studies; Standards: Governance, Best Practices and Ethics exam
Question #: 26
Topic #: 1
[All Case Studies; Standards: Governance, Best Practices and Ethics Questions]

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

Show Suggested Answer Hide Answer
Suggested Answer: D

by Keith at Jun 24, 2024, 01:55 AM

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Jade
1 months ago
I'm no board member, but I think they should review the compensation plans while enjoying a nice round of golf. Just sayin'.
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Art
1 days ago
User1: Compensation plans should be reviewed for compliance and market conditions.
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Dottie
8 days ago
User 3: And don't forget about reporting high income personnel to the regulator.
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Dorthy
22 days ago
User 2: I agree, it's important for boards to consider competitive market conditions as well.
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Jacqueline
25 days ago
User 1: Compensation plans should be reviewed to ensure compliance with risk appetite and fiduciary responsibility.
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Shannon
1 months ago
I think the answer is C) All of the above, as it covers all aspects of reviewing compensation plans for highly compensated positions.
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Viola
1 months ago
I believe the answer is D) I and II only, as those are the most crucial factors to consider in compensation plans.
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Lashawnda
2 months ago
I agree with Chantell, because all those points are important for the Board of Directors to consider.
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Avery
2 months ago
Well, if the local regulator is involved, it's gotta be serious business. I'll go with B just to be on the safe side.
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Whitley
25 days ago
User2: Yeah, it's better to cover all bases when it comes to compliance.
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Pearlie
1 months ago
User1: I think B is the safest option too.
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Chantell
2 months ago
I think the answer is C) All of the above.
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Tegan
2 months ago
Haha, can't they just give themselves massive bonuses and call it a day? Jokes aside, I think C is the way to go here.
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Jina
2 months ago
Hmm, I'm not sure. I was leaning towards D, but III about keeping high income/revenue generators sounds a bit sketchy to me.
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Lasandra
2 months ago
User 2: I agree, III does sound a bit questionable
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Rodolfo
2 months ago
User 1: I think it's B) I, II and IV only
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Delbert
2 months ago
I think the correct answer is C. All of the above. Boards of Directors need to consider all those factors when reviewing compensation plans.
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Nenita
1 months ago
Yes, and reporting all such personnel to the local regulator is crucial for transparency and accountability.
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Eugene
1 months ago
I agree, it's important for them to ensure compliance with their risk appetite and fiduciary responsibility.
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Katy
2 months ago
I think the correct answer is C. All of the above. Boards of Directors need to consider all those factors when reviewing compensation plans.
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