PRMIA Exam 8004 Topic 1 Question 26 Discussion

Actual exam question for PRMIA's 8004 exam

Question #: 26
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 Keith at Jun 24, 2024, 01:55 AM

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Jade

6 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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Yen

4 months ago

Maybe they can discuss it over a round of golf, like User Comment suggested.

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Heidy

4 months ago

I agree, it's important for the board to ensure they are meeting their fiduciary responsibilities.

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Art

4 months ago

Compensation plans should be reviewed for compliance and market conditions.

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Dottie

5 months ago

And don't forget about reporting high income personnel to the regulator.

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Dorthy

5 months ago

I agree, it's important for boards to consider competitive market conditions as well.

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Jacqueline

5 months ago

Compensation plans should be reviewed to ensure compliance with risk appetite and fiduciary responsibility.

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Shannon

6 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

6 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

6 months ago

I agree with Chantell, because all those points are important for the Board of Directors to consider.

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Avery

6 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

5 months ago

Yeah, it's better to cover all bases when it comes to compliance.

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Pearlie

5 months ago

I think B is the safest option too.

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Chantell

6 months ago

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

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Tegan

6 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

6 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

6 months ago

I agree, III does sound a bit questionable

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Rodolfo

6 months ago

I think it's B) I, II and IV only

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Delbert

7 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

6 months ago

Yes, and reporting all such personnel to the local regulator is crucial for transparency and accountability.

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Eugene

6 months ago

I agree, it's important for them to ensure compliance with their risk appetite and fiduciary responsibility.

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Katy

6 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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