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MissTica
3 years ago
10

The board of directors of CamCell, Inc., wishes to design a CEO compensation plan that will align the personal interests of the

CEO with the interests of the shareholders in long-term firm performance. The board wishes the CEO to take more short-term risks in order to achieve potentially higher long-term returns. Consequently, the board has decided on an incentive plan that involves payout based on the firm's performance five years in the future. CamCell is presently searching for a new CEO. Which of the following statements is true?
This plan will be very attractive in luring candidates for the CEO position.
CamCell may have to over-compensate its CEO in order to offset the personal risk a CEO would undertake under this plan.
Institutional investors disapprove of long-term executive incentive plans and they may sell their blocks of stock in CamCell.
This type of plan is likely to cause the CEO to underinvest in R&D in order to boost CamCell's long-term profitability.
Business
1 answer:
OLEGan [10]3 years ago
7 0

Where’s the question lol , it all cut off
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