Suppose you are a director of an energy company that has three divisions - natural gas, oil, and retail (gas stations). These divisions operate independently from one another, but all division managers report to the firm's CEO. If you were on the compensation committee (as discussed in previous question, will post below!) and your committee was asked to set the compensation for the three division managers, would you use the same criteria as that used for the firms CEO? Explain your reasoning.

(Previous question this relates to.........Suppose you were a member of Company Xs board of directors and chairperson of the companys compensation committee. What factors should your committee consider when setting the CEOs compensation? Should the compensation consist of a dollar salary, stock options that depend on the firms performance, or a mix of the two? If performance Is to be considered, how should it be measured? Think of both theoretical and practical (that is, measurement) considerations. If you were also a vice president of Company X, might your actions be different than if you were the CEO of some other company?)