Wage differentials between individuals may be partly explained ...

[Kthamas]

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?

[nital]

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]

Thanks for the timely response, appreciate it

[ryhom]

Gracias!