Does practice sound like a sensible incentive scheme to you

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Question: Please answer all parts of each question.

1. Some companies give their CEOs golden parachutes-large bonuses if the company is sold to an acquirer and the CEO loses his or her job. Does this practice sound like a sensible incentive scheme to you? Why or why not? What are the issues?

2. Are CEOs paid too much? In what sense? If incentives are important for motivating CEOs to increase shareholder value, is there any alternative?

Reference no: EM132730547

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