Who normally decides the compensation package for the Chief Executive Officer in a Fortune 500 firm?

A) the vice-presidents or the second level of executives
B) members of the Board of Directors
C) the unions through collective bargaining
D) the shareholders of the firm

Compensation Package

The total offering of pay and benefits provided to employees, including salary, bonuses, health insurance, and retirement benefits.

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions, managing overall operations, and acting as the main point of communication between the board of directors and corporate operations.

Board of Directors

A group of individuals elected to represent shareholders and govern the company's activities by establishing policies and making decisions.