In the late 1990s and into 2001, Atlanta Corp. offered its executives with compensation packages that had equity stakes in business units. Although most of the companies use equity in their rewards programs, the amounts provided to Atlanta Corp. executives were unusually high (greater than 5 percent) and not tied to long-term performance because executives were allowed to change their equity into either common stock or receive cash. The CEO and president of a subsidiary received more than $320 million by converting equity stakes into cash. In addition to the equity stakes, Atlanta rewarded two executives large cash bonuses of $64 million and $52 million The chairman/chief executive of a subsidiary allegedly received a 25-percent stake in his unit, thus becoming a minority owner. He eventually changed his stake into more than $25 million in cash before leaving the company. The executive's stake, however, was not listed on any company's proxy filings, regardless of the fact that the stake diluted the value of the shareholders' investments. QUESTIONS: (Answer the questions in not less than 100 to 150 words) 9. Explain the incentive plan in the above case. Explain which other 3 plans will be beneficial for the company in the case. (2+3=5 Marks) 10. Assess to what extent do you want to match or differ from market pay practices? (5 Marks) In the late 1990s and into 2001, Atlanta Corp. offered its executives with compensation packages that had equity stakes in business units. Although most of the companies use equity in their rewards programs, the amounts provided to Atlanta Corp. executives were unusually high (greater than 5 percent) and not tied to long-term performance because executives were allowed to change their equity into either common stock or receive cash. The CEO and president of a subsidiary received more than $320 million by converting equity stakes into cash. In addition to the equity stakes, Atlanta rewarded two executives large cash bonuses of $64 million and $52 million The chairman/chief executive of a subsidiary allegedly received a 25-percent stake in his unit, thus becoming a minority owner. He eventually changed his stake into more than $25 million in cash before leaving the company. The executive's stake, however, was not listed on any company's proxy filings, regardless of the fact that the stake diluted the value of the shareholders' investments. QUESTIONS: (Answer the questions in not less than 100 to 150 words) 9. Explain the incentive plan in the above case. Explain which other 3 plans will be beneficial for the company in the case. (2+3=5 Marks) 10. Assess to what extent do you want to match or differ from market pay practices