Answer: No
Before 2008, non-executive directors were at a disadvantage because of their lack of ………………………………….
Key words: before2008, non-executive directors, disadvantage, lack of
In the last sentence of paragraph D, the author mentioned “executives had access to information that part-time non-executive directors lacked, leaving the latter unable to comprehend or anticipate the 2008 crash”. Here, “the latter” refers to non-executive directors, while“disadvantage” can imply the fact that they were not ready or prepared for the financial meltdown in 2008. The reason for this is that non- executive directors lacked “information”. Therefore the answer has to be “information”.
Answer: information
1. Boards tend to place too much emphasis on ………………………………….
considerations that are only of short-term relevance.
Key words: tend to, too much, emphasis, short-term
We can use the skim and scan skill to find the word “short-term” in paragraph E: “they do not focus sufficiently on longer-term matters of strategy, sustainability and governance, but instead concentrate too much on short-term financial metrics”. The term “concentrate too much on” is the same as “place too much emphasis on”. So the word to fill in the blank must be about “financial metrics”. With the note that only one word is allowed and that the blank is followed by the word “considerations” , the answer should be “financial”.
place too much emphasis on = concentrate too much on
Answer: financial
1. On certain matters, such as pay, the board may have to accept the views of
………………….. Key words: pay, accept
We already know from question 32 that there are often conflicts between investors and boards concerning the matter of “compensation”, or “pay”. It is also stated in paragraph F that “shareholders use their muscle in the area of pay to pressure boards to remove underperforming chief executives”. The passage continues: “Their powers to vote down executive remuneration policies increased when binding votes came into force”. If a decision is “binding”, this means that it must be accepted.Therefore, the word to fill in the blank should be “investors” or “shareholders”.
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