(A) investment officers’ fees to be based on how the funds they manage perform, several corporations began

(B) investment officers’ fees to be based on the performance of the funds they manage, several corporations began

(C) that fees of investment officers be based on how the funds they manage perform, several corporations have begun

(D) fees of investment officers to be based on the performance of the funds they manage, several corporations have begun

(E) that investment officers’ fees be based on the performance of the funds they manage, several corporations began


I feel option B is correct. But in the answer key,it has been mentioned that answer D is correct.I am unable to understand this.The Department of Labour began to allow something after 1986,and if  you say that "several corporations have begun" it means that they have started doing it now.I feel it should be "several corporations began" which means they started it after 1986 itself.I do not know if there is anything wrong in the first part of the underlined stuff.Please help.

MaverickK

“But can you tell me why is "began" wrong here? And should we use "have <verb>" with similar sentences having the since clause.”

The same is true of the other parts of that sentence.  They want you to decide on the basis of style, not grammar, so it's not a matter of which is correct.   The sentences are all grammatically correct.  And the test-makers have already provided their answer on which one they regard as stylistically correct.  They prefer you not to use possessives with apostrophes, it appears, and neither are they happy with the case where two verbs occur together (how the funds they manage perform)

CJ