Reference no: EM133010252
Case study analysis written on Al Dunlap at Sunbeam
The analyses should be four pages of analysis- and additional exhibits and supporting calculations as needed. Please write in font 12 and use 1.5 spacing. It must have correct grammar, spelling, and points must be clear and redundant. Please answer the questions posed below.
1. Did the Morgan Stanley board handle this situation well?
2. How do you explain the board's decisions?
3. Consider Dunlap's statement on page 3 of the article: "Stakeholders! Every time I hear the word I ask ‘How much did they pay for their stake?' There is only one constituency I am concerned about and that is the shareholders." Do you agree or disagree with Dunlap's view of shareholder primacy? Explain.
4. Describe the first compensation package offered to Dunlap. Was it well designed? What are the strengths and weaknesses of the package? What type(s) of behavior would it motivate?
5. Was the second compensation package offered to Dunlap well structured? Was it excessive? Was it necessary?
6. Did the board make the right decision in firing Dunlap? Is this an example of effective or poor corporate governance? Explain.
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