Question
This year, the COO of a consulting firm earned a flat salary of $80,000. Next year, her compensation scheme will change to $40,000 + (14)
This year, the COO of a consulting firm earned a flat salary of $80,000. Next year, her compensation scheme will change to $40,000 + (14) ($100,000). What effect do you think the change in compensation will have on i)?
The COO's effort and productivity and ii)?
The overall company profits?
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Managerial Economics
Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward
5th Edition
1337106666, 978-1337106665
