Fortune magazine with sticky note marking

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Reference no: EM131297478

You notice that the time is getting late and you decide to leave the office for the day, satisfied with your work thus far at Shefrain Consulting. Prior to leaving the office you check your company mailbox for the first time and notice a copy of Fortune magazine with a sticky note marking the page with the following quotation: "I have never asked to serve on a corporate board, never even hinted at wanting to be on one. And I have never asked to be on a compensation committee. I suspect that the reason I've been put on so many is that word gets around that I believe in paying people very, very well... I cannot sit and say to you what the right compensation number is. That's the judgment call, the business judgment call. That's what a board of directors does... What I know most of all is that when I see extraordinary effort and results out of a CEO, you can't pay him enough." Furthermore you notice scribbled on the sticky note a brief note from your CFO indicating that he has been asked to serve on a compensation committee for a large fortune 500 company. Having freshly graduated from college, he asks if you would be willing to brief him on the dynamics of board of directors in the context of recent literature in Behavioral Finance.

Question: Prepare a professional 1-2 page memo addressed to the CFO describing the recent behavioral finance literature on the topic on issues related to the Board of Directors, double-space, Times New Roman 12 point font; reference page(s) do not count in the page limit. In your report be sure to include at least 4 recent academic references.'

Reference no: EM131297478

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