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Jill is the CEO of Company Y. She is accountable to the board of directors who the company's shareholders choose. In line with recommendations from
Jill is the CEO of Company Y. She is accountable to the board of directors who the company's shareholders choose. In line with recommendations from these shareholders, the board links Jill's compensation to the performance of Company Y. In response to this, Jill starts dedicating extra time to projects and engaging in additional activities to ensure job security and appropriate compensation. The reason why the board ties Jill's compensation to firm performance is to overcome a. the principal-agent problem. b. inside director-outside director conflict. c. fiduciary responsibility oversight. d. shareholder capitalism scenario
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