=+You must design a compensation package for the CEO that will maximize the firm’s expected profit. While the firm is risk neutral, the CEO is risk averse. The CEO’s utility function is Utility = W.5 when making low effort Utility = W.5 - 100 when making high effort where W is the CEO’s income. (The -100 is the “utility cost” to the CEO of making a high effort.) You know the CEO’s utility function, and both you and the CEO know all of the information in the preceding table. You do not know the level of the CEO’s effort at time of