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Assume you're in charge of the executive compensations at Abschlussprüfung Inc. (Revenue=$1 billion; Stock price=$100; Net income=$200 million). You want to design the compensation package in a way to achieve the following objectives.

- By the next year, the net income should increase at least 10%.

- By the next year, the revenue should increase at least 15%.

- Stock price increase to at least $150 in five years.

Be creative and design a package to keep your CEO's interest in line with the aforementioned objectives without losing him to competitors. Make assumptions wherever necessary and write them down as part of your answer.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92176788

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