Fundamentals of Financial Management (MindTap Course List)
14th Edition
ISBN: 9781285867977
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 1, Problem 12Q
Summary Introduction
To identify: The factors that the committee must consider while setting the CEO’s compensation. Whether the compensation must be of dollar or stock or both. The way to measure the performance. The actions of Person X if he is the vice president of some other company.
Compensation Package: The compensation package of the manager should be attractive which inspire them to perform actively. If the compensation package is good, the manager will focus on the maximization of stockholders value. The compensation package should be fair.
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