Last visit was: 14 Sep 2024, 19:39 It is currently 14 Sep 2024, 19:39
Toolkit
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

# Although recent censure of corporate boards of directors as “passive”

SORT BY:
Tags:
Show Tags
Hide Tags
Senior Manager
Joined: 05 Nov 2012
Posts: 338
Own Kudos [?]: 4685 [39]
Given Kudos: 606
Concentration: Technology, Other
Board of Directors
Joined: 18 Jul 2015
Status:Emory Goizueta Alum
Posts: 3592
Own Kudos [?]: 5511 [8]
Given Kudos: 346
General Discussion
Intern
Joined: 01 Aug 2014
Posts: 28
Own Kudos [?]: 65 [1]
Given Kudos: 3
Retired Moderator
Joined: 08 Dec 2013
Status:Greatness begins beyond your comfort zone
Posts: 2082
Own Kudos [?]: 9106 [1]
Given Kudos: 171
Location: India
Concentration: General Management, Strategy
GPA: 3.2
WE:Information Technology (Consulting)
Re: Although recent censure of corporate boards of directors as “passive” [#permalink]
1
Kudos
One of the easier passages . Took 2 mins to read and 4 mins 30 seconds in total

-The author acknowledges the problem of corporate boards
- The author then talks about the potential reasons about why the corporate boards are failing
- The author then offers a solution around boards themselves improving their performance

1. “Most corporate boards’ compensation committees focus primarily on peer-group comparisons. They are content if the pay of top executives approximates that of the executives of competing firms with comparable short-term earnings or even that of executives of competing firms of comparable size"
Option (C ) is a clear word justification of the above and is hence correct.

2. “There are ample opportunities for boards themselves to improve corporate performance."

Current Student
Joined: 18 Jun 2016
Posts: 217
Own Kudos [?]: 623 [0]
Given Kudos: 111
Location: United States (NY)
GMAT 1: 720 Q50 V38
GMAT 2: 750 Q49 V42
GPA: 4
WE:General Management (Other)
Re: Although recent censure of corporate boards of directors as “passive” [#permalink]
Kindly Tag this RC as Exam Pack 1
Intern
Joined: 12 Sep 2016
Posts: 9
Own Kudos [?]: 3 [0]
Given Kudos: 32
Re: Although recent censure of corporate boards of directors as “passive” [#permalink]
Hi,

Can someone pls explain, what is the issue in Option C of 3rd question - "means of dealing with a problem is proposed, and the manner in which a solution was reached is explained."

In other words, I need help to choose between A and C. Both seem pretty close to me.

Thanks,
Ankur
SVP
Joined: 14 Dec 2013
Posts: 2401
Own Kudos [?]: 15348 [1]
Given Kudos: 26
Location: Germany
Schools:
GMAT 1: 780 Q50 V47
WE:Corporate Finance (Pharmaceuticals and Biotech)
Re: Although recent censure of corporate boards of directors as “passive” [#permalink]
ankur2710
Hi,

Can someone pls explain, what is the issue in Option C of 3rd question - "means of dealing with a problem is proposed, and the manner in which a solution was reached is explained."

In other words, I need help to choose between A and C. Both seem pretty close to me.

Thanks,
Ankur

"..the manner in which a solution was reached is explained" - incorrect:
The passage does not mention any particular case in which a solution was reached in some particular manner. The passage OFFERS proposal to deal with the problem but does not state whether that proposal was implemented in some case to solve the problem.

(Moreover the beginning of the passage does not mention means of dealing with the problem. Only at the end of the passage some means to deal with the problem is proposed. Option C wrongly implies that first a means is proposed, and then it is explained how a solution is reached.)
Manager
Joined: 22 Mar 2014
Posts: 77
Own Kudos [?]: 38 [0]
Given Kudos: 136
Location: United States
Concentration: Finance, Operations
GMAT 1: 530 Q45 V20
GPA: 3.91
WE:Information Technology (Computer Software)
Re: Although recent censure of corporate boards of directors as “passive” [#permalink]
Hi,

I knew the ans of the second question was hidden into the line 'At times, despite disappointing corporate performance, compensation of 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.'

But I did not understand how option E. Corporate boards themselves could act to make such legislation unnecessary. is connected to the bold phase above. Can anyone help? It seems very easy question, But I am not able to get it.
Manager
Joined: 24 Jan 2017
Posts: 121
Own Kudos [?]: 328 [3]
Given Kudos: 106
GMAT 1: 640 Q50 V25
GMAT 2: 710 Q50 V35
GPA: 3.48
Re: Although recent censure of corporate boards of directors as “passive” [#permalink]
2
Kudos
1
Bookmarks
arunavamunshi1988
Hi,

I knew the ans of the second question was hidden into the line 'At times, despite disappointing corporate performance, compensation of 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.'

But I did not understand how option E. Corporate boards themselves could act to make such legislation unnecessary. is connected to the bold phase above. Can anyone help? It seems very easy question, But I am not able to get it.

Hi,

The following is my approach on Question no.2. Hope that it would help.

The passage suggests which of the following about government legislation requiring that corporate boards undergo reform?

"At times, despite disappointing corporate performance, compensation of 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."

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 by such legislation to a greater extent than would the economy as a whole.

---> A, B and C are incorrect, because there is no information about effect(s) of government legislation on board's candidates, competition among companies, and performance of individual companies discussed in the passage.

D.Such legislation would duplicate initiatives already being made by corporate boards to improve their own performance.
---> Be careful! This is a very tempting option, if you rely on only the bold face you mentioned above "suggestions that the government should legislate board reform are premature". But the point may lie on the last sentence of the 1st paragraph that explains why government legislation is not preferred - "There are ample opportunities for boards themselves to improve corporate performance."
. Therefore, option (D) is out!

E.Corporate boards themselves could act to make such legislation unnecessary.
----> Correct! This is exactly the reason why we don't need government legislation, as mentioned at end of the 1st paragraph.
Director
Joined: 29 Jun 2017
Posts: 773
Own Kudos [?]: 404 [0]
Given Kudos: 2198
Re: Although recent censure of corporate boards of directors as “passive” [#permalink]
regarding choice c
it takes me a long time for this question. choice a and c are close.
choice c is wrong because "manner for a solution" dose not exist. "means for dealing with problem is proposed " is correct.

trying to find 1 or 2 wrong words to eliminate. it is hard
Non-Human User
Joined: 01 Oct 2013
Posts: 17748
Own Kudos [?]: 878 [0]
Given Kudos: 0
Re: Although recent censure of corporate boards of directors as passive [#permalink]
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: Although recent censure of corporate boards of directors as passive [#permalink]
Moderators:
GMAT Club Verbal Expert
7056 posts
GMAT Club Verbal Expert
234 posts
GRE Forum Moderator
14019 posts