The CEO of Skyco, a publicly traded company that has been earning below-average returns, has been publicly criticized by shareho

Question

3 years ago

6

The CEO of Skyco, a publicly traded company that has been earning below-average returns, has been publicly criticized by shareho

lders for persuading the board of directors to give her interest-free loans, for having the company purchase and furnish a lavish apartment in Paris for her personal use on her twice-yearly trips there, and for excessive stock options. The CEO's behavior may be an indication of:

Business

1 answer:

SIZIF [17.4K] · Answer 1 · 2022-06-10T10:47:56+03:00

Answer: a weak Board of Directors

Explanation:

Based on the information given in the question, we can attribute the behavior of the CEO to be an indication that the Board of Directors are weak.

Since the company has been earning below-average returns, the Board of Directors shouldn't be agreeing to the terms set by the CEO or her request. The CEO is doing whatever she's doing because she sees the Board of Directors as being weak and taking advantage of them.