Economic

Question 1 : What is the tradeoff /opporunity cost (`no chuck up the sponge lunch` ) in this situation , what is a best steerable resultant role to which parties might agreeAnswer : The soaring chief operating(a) officer founder is a battleground of intense cope among corporates and the policymakers alike . In berth the pay of the chief operating officer of the jointure is curtailed , it would lead to savings for the self-coloured and this is the opportunity cost associated with the pay cut . except the tradeoff is in terms of the eliminate of talented and visionary CEO s from the firm So , a best possible solution in this case would be to evolve a symmetry of the CEO s salary to that of the final designation in the company . Plus the stock excerption component should also be evenly distributed at on the whole levels Question 2 : Describe how governmental captivate has (or could ) influence the situationAnswer : As was evident in the scandals border Enron , WorldCom and other companies , it was evident that the CEO s of these companies enjoyed considerable political influence among the policymakers thus making the subject of their soaring pay an resolution that was not taken up by the shareholders . Executive compensation is an area where the lawmakers have an substantial role to play . However , they have just watched their interpellation to suggesting that CEO s limit their compensation voluntarily and not enforced the same in a legislative framework...If you want to keep up a in effect(p) essay, order it on our website: OrderEssay.net

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