2. Are CEOs paid too much? In what sense? If incentives are important for motivatingCEOs to increase shareholder value, is there any alternative?

Please answer all parts of each question.

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1. Some companies give their CEOs golden parachutes—large bonuses if the companyis sold to an acquirer and the CEO loses his or her job. Does this practice soundlike a sensible incentive scheme to you? Why or why not? What are the issues?

2. Are CEOs paid too much? In what sense? If incentives are important for motivatingCEOs to increase shareholder value, is there any alternative?

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