Question 2 i discuss about (principal agent problem, information asymmetry problem, ethical hazard problem)

• Based on your discussion in Question 2, you are to give your opinion as to whether the CEOs remuneration is justifiable.
• You could discuss both the pro and cons of linking the CEOs remuneration to the accounting numbers or ratios, and then provide your opinion as to why you think the CEOs high remuneration is or is not reasonable