CJ Equity Partners is a privately held firm that buys small family-owned firms, installs professional managers to run the firms, and then sells them three to five years later, often for a substantial profit. CJ Equity is owned by four partners who raise capital from wealthy investors and invest this money n unrelated firms. Their aim is to provide a 15 percent rate of return on their investors' capital after aying the partners of CJ Equity a management fee. CJ Equity currently owns three operating com- anies: a tool and die company (Jasco Tools), a chemical bottling company (Miller Bottling), and a anitorial supply company (JanSan). The professional managers running these three companies are aid a fixed salary and bonus based on the performance of their company. Currently, CJ Equity is neasuring and rewarding its three professional managers based on the net income after taxes of their 9