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Author Question: Wage differentials between individuals may be partly explained by: a. differences in education. b. ... (Read 106 times)

Kthamas

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on: Jun 30, 2018
Wage differentials between individuals may be partly explained by:
 a. differences in education.
 b. differences in productivity.
  c. discrimination.
 d. all of the above.

Question 2

What are typical components of executive compensation and how do they resolve principal/agent problems between shareholders and executives?


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nital

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Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

Executive compensation often takes the form of fixed base pay combined with pay that is sensitive to organizational performance. Such a package can diminish the principal/agent problem between shareholders and executives by inducing executives to take risky decisions in the interests of diversified shareholders that they would not otherwise have made.


Kthamas

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Reply 2 on: Jun 30, 2018
YES! Correct, THANKS for helping me on my review

scottmt

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Reply 3 on: Yesterday
Excellent

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