Question

Boards of directors in the united states are required to staff their compensation committees exclusively with outside directors.

a. True
b. False

Answer 1

I think it is true
I’m sorry if this answer is wrong

Answer 2

The correct answer is letter "A": True.

Step-by-step explanation:

The Board of Directors or B of D is a group appointed or elected to represent shareholders in major companies. Every public company must have a board of directors. This board establishes administrative policies including the hiring and firing of executives, distribution of dividends and executive compensation.

In the United States, compensation committees for the board of directors must be formed with independent or outside directors. This is done to balance the individual interest of the inner directors with the company's interest as a whole.