Although recent censure of corporate boards of directors as“passive” and “supine” may be excessive, those who criticize board performancehave plenty of substantive ammunition. Too many corporate boards fail in their two crucialresponsibilities of overseeing long-term company strategy and ofselecting, evaluating, and determining appropriate compensation of topmanagement. At times, despite disappointing corporate performance, compensationof chief executive officers reaches indefensibly high levels, nevertheless,suggestions that the government should legislate board reform are premature.There are ample opportunities for boards themselves to improve corporate performance.
Most corporate boards’ compensationcommittees focus primarily on peer-group comparisons. They are content if thepay of top executives approximates that of the executives of competing firmswith comparable short-term earnings or even that of executives of competingfirms of comparable size. However,mimicking the compensation policy of competitors for the sake of paritymeans neglecting the value of compensation as a means of stressing long-termperformance. By tacitly detaching executive compensation policy from long-termperformance, committees harm their companies and the economy as a whole. The committees must develop incentive compensationpolicies to emphasize long-term performance. For example a board’scompensation committee can, by carefully proportioning straight salary and suchshort-term and long-term incentives as stock options, encourage top managementto pursue a responsible strategy.
The passage suggests which of the following about governmentlegislation requiring that corporate boards undergo reform?
A. Such legislation is likely to discourage candidates from joining corporate boards.
B. Such legislation is likely to lead to reduced competition among companies.
C. The performance of individual companies would be affected bysuch legislation to a greater extent than would the economy as a whole.
D. Such legislation would duplicate initiatives already beingmade by corporate boards to improve their own performance.
根据自己的定位，然后我再看见improve performance就选D了，还以为自己定位准的不行呢。
E. Corporate boards themselves could act to make such legislationunnecessary.
如上，我是根据划线部分定位的~~怎么理解是这道题的解释呢？我这么定位考试的时候怎么能发现不对呢~~？
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发表于 2011-10-8 13:05:41
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