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28 Sep 2019
If a companyâs board of directors wants management to maximizeshareholder wealth, should the CEOâs compensation be set as a fixeddollar amount, or should the compensation depend on how well thefirm performs? If it is to be based on performance, how shouldperformance be measured? Would it be easier to measure performanceby the growth rate in reported profits or the growth rate in thestockâs intrinsic value? Which would be the better performancemeasure? Why? (250 words)
If a companyâs board of directors wants management to maximizeshareholder wealth, should the CEOâs compensation be set as a fixeddollar amount, or should the compensation depend on how well thefirm performs? If it is to be based on performance, how shouldperformance be measured? Would it be easier to measure performanceby the growth rate in reported profits or the growth rate in thestockâs intrinsic value? Which would be the better performancemeasure? Why? (250 words)
1
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watching
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Trinidad TremblayLv2
28 Sep 2019