Banking · Corporate Governance & Compensation
A well-designed remuneration structure in banks should not encourage excessive short-term risk-taking for immediate gains. The governance concern in compensation design arises because:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1governance applies only to board members and not employees
- 2poorly designed incentives may reward risk without adequate regard to long-term outcomes✓
- 3all compensation decisions are determined solely by the regulator
- 4variable compensation has no relationship with behavior
Correct answer
poorly designed incentives may reward risk without adequate regard to long-term outcomes
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Banking?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Corporate Governance & Compensation MCQs →Want more practice questions on Corporate Governance & Compensation?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Banking · Corporate Governance & Compensation