Go to Yahoo or Google Finance and select a publicly traded company that interests you. Research your selected company and obtain the companys annual report (Form 10-K) and proxy statement (Form Def 14A). Review these documents (specifically the proxy statement) to get a better understanding of the companys compensation structure, philosophy and objectives. Using the companys annual report and proxy statement, answer the following questions.

What is the total compensation for the three highest paid officers (including the value of stock options and other benefits)?

What are the companys compensation philosophy and objectives?How does the company set executive compensation?

What are the components of the companys compensation program (i.e., what mix of salary, benefits, stock, etc. does the company use to compensate its executives)?Do you think that the company is using the appropriate compensation incentives?According to the compensation committee, is the current compensation of the top executive(s) justified based on the companys past and/or current performance?

Review the Managements Discussion and Analysis of the Financial Condition and Results of the Operations (the MD&A) in the companys annual report.Based on the information in the MD&A, is the compensation to top executives justified?Is it consistent with the compensation committees analysis?

Based on the information in the proxy statement and the annual report, would any of the other executive officers be an appropriate replacement for the CEO?If not, whom would you recommend as an outside candidate (hint:you might review the profiles of top management in competitors annual reports)?