The CEO of a company makes the following announcement to the vice presidents, In five years, Im
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The CEO of a company makes the following announcement to the vice presidents, “In five years, I’m going to step down and one of you five will become CEO. I will let each of you run a division of the company, and the one making the highest profit will get my job.”
What is the advantage of this type of contest compared with grooming a favorite for the position? What is the disadvantage? Why will the CEO’s pay be much larger than that of the vice presidents?
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