Question
At a stockholder's meeting it is discovered that the CEO of the firm, who is compensated with $25 million in cash, is busy interviewing for
At a stockholder's meeting it is discovered that the CEO of the firm, who is compensated with $25 million in cash, is busy interviewing for jobs with other firms and might as a result take the intellectual property to another firm unless a new offer is made. Several fellow stockholders suggest that the CEO compensation be increased to $30 million. You instead suggest that the CEO be given $15 million in cash and $10 million worth of stocks. The CEO is given your option and accepts the new deal and stays with the firm. Why were you correct in making this suggestion(what problem did you solve?) and why did the CEO accept this offer? explain
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