PRMIA Exam 8004 Topic 1 Question 30 Discussion

Actual exam question for PRMIA's 8004 exam

Question #: 30
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 Armanda at Aug 02, 2024, 04:05 PM

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Angelica

4 months ago

I'm not sure, I think it could also be D) I and II only, as those are crucial factors to consider in compensation plans.

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Toshia

4 months ago

I agree with Roxane, because all the options seem important for the Boards of Directors to consider.

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Roxane

4 months ago

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

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Alyce

4 months ago

Wait, are we talking about the Compensation Committee or the Comedy Club? I'm just here for the discretionary bonus plans, if you know what I mean.

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Judy

3 months ago

Yeah, and also for keeping high income generators with discretionary bonus plans.

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Colton

4 months ago

I think it's for competitive market conditions and ensuring compliance with risk appetite.

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Twila

4 months ago

We need to review compensation plans for highly compensated positions.

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Reuben

4 months ago

I believe C) All of the above is the correct answer, as reporting to the regulator is also crucial in this context

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Jade

4 months ago

I agree, because competitive market conditions and compliance with risk appetite are important factors to consider

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Jettie

4 months ago

This question is really testing our corporate governance chops. Time to put on my boardroom hat and choose wisely!

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Mitsue

4 months ago

Hmm, III sounds a bit sketchy to me. Why would we want to prioritize 'high income / revenue generators' over everything else? Nah, I'm sticking with A.

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Sang

3 months ago

I'm with you on that. A it is.

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Sonia

4 months ago

Yeah, I agree. I think A covers all the important aspects we need to consider.

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Barabara

4 months ago

But shouldn't we also consider the overall market conditions and compliance with our risk appetite?

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Gladys

4 months ago

I think III is important because we need to keep our top performers happy.

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Ceola

5 months ago

I'm going with B. Focusing on market conditions and fiduciary responsibility seems like the safest bet here.

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Rhea

4 months ago

I think C might be a good option too, as it includes all the points mentioned in the question.

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Micheal

4 months ago

I agree, B seems like the most logical choice. It covers both market conditions and fiduciary responsibility.

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Micah

5 months ago

Option C covers all the key aspects, including compliance, risk appetite, and reporting. Gotta nail that one!

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Harley

4 months ago

Option C seems like the most comprehensive choice for the review of compensation plans.

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Desire

4 months ago

Definitely, we need to ensure we are meeting our fiduciary responsibility to shareholders.

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Dorothy

4 months ago

Agreed, it's important to consider all those factors when reviewing compensation plans.

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Jovita

4 months ago

User 3

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Raina

4 months ago

Option C covers all the key aspects, including compliance, risk appetite, and reporting. Gotta nail that one!

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Serina

4 months ago

User 2

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Lura

5 months ago

User 1

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Ilda

5 months ago

I think the answer is B) I, II and IV only

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