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Mashcka [7]
3 years ago
7

The manager of your company's pension fund is compensated based entirely on fund performance; he earned over $1.2 million last y

ear. As a result, the fund is contemplating a proposal to cap the compensation of fund managers at $100,000. Provide an argument against the proposal.
Business
1 answer:
Anon25 [30]3 years ago
8 0

Answer:

The compensation to the fund manager is based on the performance of the pension fund. If the fund performs well and earns significant profit, then the compensation to the mangers should increase.  

If it incurs losses, then the argument for capping the compensation of funds managers will gain ground. Note that the manager is being paid according to the pay-for-performance scheme. Thus it is unjustified that his compensation is reduced when there is no significant evidence that his performance was responsible for the poor performance of the fund. The manager has earned over $1.2 million last year. Hence fixing the compensation of managers to $100,000 should be considered only when the fund has under performed drastically. Without such evidence, such capping will only demoralize them and the profitability of the company will fall.

Explanation:

You might be interested in
The index weighting that results in portfolio weights shifting away from securities that have increased in relative value toward
Sliva [168]

Answer: B. Fundamental weighting.

Explanation:

A fundamentally weighted index refers to a type of equity index whereby the components that are chosen based on the fundamental criteria like the dividend rates, book value, revenue, dividend rates, etc.

Fundamental weighting is the index weighting which results in portfolio weights shifting away from securities that have increased in relative value toward securities that have fallen in relative value whenever the portfolio is rebalanced.

3 0
3 years ago
In the short run, if average variable cost equals $50, average total cost equals $75, and output equals 100, the total fixed cos
musickatia [10]

Answer: $2500

Explanation:

From the question,

Average variable cost(AVC) = $50

Average total cost (ATC) = $75

Output (Q) = 100

Since Average fixed cost is the difference between the average total cost and the average Variable cost. This will be:

AFC = ATC - AVC

AFC = $75 - $50

AFC = $25

We should note that:

AFC = TFC / Q

TFC = AFC × Q

TFC = $25 × 100

TFC = $2500

Therefore, total fixed cost is $2500

5 0
3 years ago
When some countries increase their imports as a result of worldwide economic growth, other countries must be increasing their:__
ziro4ka [17]

Answer:

exports as demand in all countries substantially rises.

5 0
3 years ago
What is a benefit for enrolling in employer-sponsored health insurance?
mel-nik [20]

Answer:

The correct answer is letter "A": With employer-sponsored health insurance, your employer will pay a part of the bill for you and the benefits will not be taxed.

Explanation:

The greatest advantage of employer-sponsored health insurance relies on the fact that a portion of the premium is paid by the employer and the other proportion is paid by the worker -usually 50% is paid by each party. Besides, those premiums are federally tax-free.

3 0
3 years ago
An example of event risk is: ________.
OlgaM077 [116]

One example of the phenomenon known as event risk is b.a corporate takeover.

<h3>What is an event risk?</h3>

An event risk is a type of investment risk that an incident or event will be so notable that it will cause widespread effects on an industry and the economy in general.

One such event is a corporate takeover that leads to a company having stronger market power and influence.

With the world being interconnected these days thanks to globalization tendencies, a corporate takeover would also affects the economies of several nations.

This is because the branches of the companies in order nations might have to make decisions that affect the unemployment rates and productive capacity of their host nation.

For instance, if Coca-Cola and Pepsi decided to merge, this could have far reaching consequences. The risk that this would negatively affect a person's investment is event risk.

In conclusion, this is event risk.

Find out more on investment risk at brainly.com/question/6838192.

#SPJ1

7 0
2 years ago
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