Compensation Arrangements for Research Analysts

Very Easy Research Objectivity Standards Compensation Arrangements

In the context of the CFA Institute's Research Objectivity Standards, compensation arrangements for research analysts are a critical area of concern. These arrangements can impact the analyst's objectivity in providing analysis and recommendations. Which of the following statements accurately reflects the standard regarding compensation arrangements for research analysts?

Compensation for research analysts should be contingent upon the performance of the companies they cover.

Research analysts’ compensation should be structured in a way that does not incentivize conflicts of interest.

It is acceptable for analysts to receive bonuses tied solely to corporate revenue growth.

Hint

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