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5. The chart below represents a CEO compensation game. Please use this information to answer the following questions: a.As a compensation committee member (i.e. A

5. The chart below represents a CEO compensation game. Please use this information to answer the following questions:

a.As a compensation committee member (i.e. A member of the committee determining CEO compensation), what is your preferred outcome?

b.What are some of the consequences and costs not reflected in the table (Hint: Think about transactions costs)?

c.What could increase the likelihood of reaching the bottom left quadrant in this game (Please explain)?

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Corporation Bankrupt Corporation Profitable Fair Compensation Excess Compensation CEO received $500,000 CEO received $20 million CEO received $500,000 CEO received $500,000

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