Discuss CFA Institute Sustainable-Investing Exam Topic 2 Question 12

In addition to an audit committee, almost all major companies have:

Asustainability and risk committees.

Bremuneration and risk committees.

Cnomination and remuneration committees.

Suggested Answer: C

Most companies, particularly those operating under strong corporate governance frameworks (e.g., UK Corporate Governance Code), are expected to maintainthree principal board committees: audit, nomination, and remuneration. These committees serve critical governance functions---financial oversight, board composition, and executive pay.

''Expectations and duties of the three principal board committees that almost all major companies have in place: the audit committee... the nominations committee... and the remuneration committee.''

While sustainability or risk committees may exist in some firms, they are not as universally established as the three mentioned above.

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12 comments · newest first

Wynell 3 months ago

B makes sense too. Remuneration is always a hot topic in big firms.

Thurman 3 months ago

I lean towards A. Sustainability is key for major companies now.

Dominga 3 months ago

I think it's C. Nomination and remuneration committees are crucial.

Tenesha 3 months ago

C is pretty standard too, can't forget nominations!

Lettie 3 months ago

Really? I doubt all major companies have those.

Weldon 3 months ago

I thought B was more common, interesting!

Antonio 5 months ago

Definitely A, sustainability is key!

Kristian 5 months ago

Most big companies do have these committees.

Graciela 6 months ago

I believe the nomination and remuneration committees are quite typical, but I need to double-check if they are required alongside the audit committee.

Nettie 6 months ago

I’m a bit confused; I thought sustainability committees were becoming more common, but I can't recall if they're standard for all major companies.

Sharika 6 months ago

I feel like I've seen a question similar to this before, and I think the answer was related to remuneration and nominations.

Alaine 6 months ago

I think I remember reading about committees in corporate governance, but I'm not entirely sure which ones are mandatory.

CFA Institute Sustainable-Investing Exam - Topic 2 Question 12 Discussion