When executive compensation is based on the organization’s financial results, which of the following situations is most likely to arise?
A . The organization reports inappropriate estimates and accruals due to poof accounting controls.
B . The organization uses an unreliable process forgathering and reporting executive compensation data.
C . The organization experiences increasing discontent of employees, if executives are eligible for compensation amounts that are deemed unreasonable.
D . The organization encourages employee behavior that is inconsistent with the interests of relevant stakeholders.
Answer: D
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