CFA Level I · CFA Level I Exam · Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
Which board committee is most likely responsible for recommending candidates for board vacancies and assessing the skills mix of the board?
The nomination committee is responsible for recommending candidates for board vacancies and assessing the board's skills mix. The audit committee oversees financial reporting and the remuneration committee sets executive pay, so neither of them handles director selection.
- AAudit committee
- BNomination committeeCorrect
- CRemuneration committee
Explanation
The nomination (or governance) committee identifies and recommends director candidates and reviews board composition. The audit committee oversees financial reporting and controls. The remuneration committee sets executive pay.
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