Question
Suppose that the Board of Directors pays the CEO a bonus in any year that the share price goes up compared to the previous year,
Suppose that the Board of Directors pays the CEO a bonus in any year that the share price goes up compared to the previous year, but no bonus if the share price either falls or stays the same. What would this particular type of compensation scheme be designed to control?
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Public Finance In Canada
Authors: Harvey S. Rosen, Wen, Snoddon
4th Canadian Edition
0070071837, 978-0070071834
