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Effective mechanism to reduce the manager opportunism

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Reference no: EM132360424

Executive compensation is supposed to be an effective mechanism to reduce the manager's (as the agent) opportunism. Do you think the current executive compensation system is perfect? (In economic crisis, the compensation of the CEOs or top level managers of many unsuccessful businesses are high or even increased. In other words, CEO's pay is not consistent with the firm performance). Do we have a solution? Please use real world examples to explain.Above 300 words.

Reference no: EM132360424

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