Under a split-off, stockholders exchange parent stock for the shares of a subsidiary. The stated objective is to increase shareholder value. The split-off enables each distinct business part to be valued separately. The sum of the parts is usually greater than the whole in such cases. Engage in a conversation with your classmates about corporate governance issues surrounding split offs. Consider the following questions: If managers are compensated based on reported profit, how might they structure the split-off? What could the board of directors do to mitigate corporate governance problems related to split-offs? Do you see any see any corporate governance effects for the split-off firm? Under a split-off, stockholders exchange parent stock for the shares of a subsidiary. The stated objective is to increase shareholder value. The split-off enables each distinct business part to be valued separately. The sum of the parts is usually greater than the whole in such cases. Engage in a conversation with your classmates about corporate governance issues surrounding split offs. Consider the following questions: If managers are compensated based on reported profit, how might they structure the split-off? What could the board of directors do to mitigate corporate governance problems related to split-offs? Do you see any see any corporate governance effects for the split-off firm