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?
Market values
Debt levels
Business risk
Agency costs
Limited liability
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Public Finance In Canada
Authors: Harvey Rosen, Beverly George Dahlby, Roger Smith, Jean-Francois Wen, Tracy Snoddon
3rd Canadian Edition
0070951659, 978-0070951655
