The criteria used for setting compensation for divisional managers and CEO would be same or different. Introduction: Compensation Package: The compensation package of should structured in that way which seems attractive and 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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Chapter 1, Problem 13Q

Summary Introduction

To identify: The criteria used for setting compensation for divisional managers and CEO would be same or different.

Introduction:

Compensation Package: The compensation package of should structured in that way which seems attractive and 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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