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Define the two types of equity

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Reference no: EM133161409

When a company is establishing a compensation system, it needs to consider both internal equity and external equity.

(a) Briefly define the two types of equity, providing an organizational example for each.

(b) Describe how emphasizing one type of equity over the other might affect the company's approach to paying their CEO. What are the advantages and disadvantages of each?

Reference no: EM133161409

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