Our previous discussions about compensation levels

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Consider executive compensation.

a) In all of our previous discussions about compensation levels, we never discussed the possibility that employees were paid too much. What is different about paying CEO’s that makes overpayment a possibility?

b) Consider the two models of CEO pay: skimming and optimal contracts. Cite 2 pieces of evidence to support the skimming model and 2 pieces of evidence that supports the optimal contracts model.

Reference no: EM131133754

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