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March 29, 2017

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Suppose you decide to elicit high CEO effort when and if good luck occurs by paying the bonus for $1 billion outcomes only. What criticism can you see with this incentive contract plan?

  • economics - ,

    Suppose you decide to elicit high CEO effort when and if bad luck occurs by paying the bonus for $500 million outcomes. What criticism can you see with this incentive contract plan?

  • economics - ,

    What is the maximum amount it would be worth to shareholders to elicit high CEO effort all the time rather low CEO effort all the time?

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