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You are the CFO of the Modern Finance Company (MFC), which is a brokerage firm with three divisions (Western, Central, and Southeastern). In addition to
You are the CFO of the Modern Finance Company (MFC), which is a brokerage firm with three divisions (Western, Central, and Southeastern). In addition to overall corporate financial strategy, the Financial Managers of each division report directly to you. It is now the time when the divisions do their performance reviews for their Analysts, and people get raises. You approve all compensation packages, so this is a busy time for you. You were the youngest person to be CFO at MFC, no doubt because of your hard work, fiscal frugality and responsibility. You take pride in the fact that you run a tight ship. You don't mind paying for value, but you need to get value. You credit your success to your thrift and your ability to spot and cultivate real value. The CEO and the other Board of Director members consistently reinforce this fact. This has kept your company in the black even though the labor markets have been turbulent. The issue of paying for value (or not) recently came to a head when you heard through the grapevine that the Financial Manager in the Central Division, Margaret Portuganta, wants to poach an employee
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