You are an investor in Purr Co$,$ a pet food company. Purr Co is going trough a difficult financial time, it has been making losses for the last three years. There will be an annual general meeting of shareholders soon, during which you will be voting on the proposed compensation package of the CEO of Purr cO$.$ Your main concern for Purr Co is avoiding bankruptcy. Do you think the following pay package is adequate? Explain your assessment.

Proposed package:

Base salary of $$200,000$ per year

Annual performance bonus of up to $25\%$ of annual salary based on achieving profitability