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1. Do boards evaluate the CEOs personal risk incentive and the overall risk tolerance of the firm? 2. A long list of regulations have been

1. Do boards evaluate the CEOs personal risk incentive and the overall risk tolerance of the firm?

2. A long list of regulations have been enacted or proposed to reshape the financial industry following the crisis. A simple solution might be for directors to lower the risk-taking incentive they provided for CEOs is by replacing stock option grants with direct equity awards. How much risk should bank executives be encouraged to take?

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