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You strongly believe that a manager of your company takes excessive risk at the expense of debtholders, so you want to mitigate her excessive risk-taking.
You strongly believe that a manager of your company takes excessive risk at the expense of debtholders, so you want to mitigate her excessive risk-taking. How can you change the manager's incentive, in terms of her compensation? Briefly describe your strategy and explain why you believe it works.
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