One of the main reasons that American executives are paid so much is:
A. High executive compensation in other nations puts upward pressure on the salaries of U.S. executives.
B. Qualified individuals are scarce, because most current CEOs were born during the "baby bust" years of the Great Depression.
C. Most executives are paid based on their performance, and rising compensation reflects the excellent performance of their firms.
D. Pay is set by the compensation committees of the board, largely comprised of other CEOs who have an interest in pushing compensation up.
Answer: D
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