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Economics

You work for a compensation-consulting firm. You are designing a compensation scheme for the CEO of a major corporation. The board has asked you to choose the parameters a, b, and c, in the following incentive contract:
I = a + b [(company stock return) - c (industry stock return)]

Discuss the key factors that will influence your recommendation for each of these three parameters.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9692889

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