College of Business Administration

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Seminar in Corporate Governance

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Discussion Questions for April 05, 2000


1) When Jerry Newmin visited our class he observed that executive compensation had taken on the form of bidding for professional athletes. Do you agree? Why or why not? What are the corporate governance implications of 'bidding wars' for senior management team talent?

2) Based upon your reading in Chapter 2 of Keasey and Wright's Corporate Governance: Responsibilities, Risks and Remuneration, what solutions can you offer to the problem of agency costs?

3) Is the level of senior executive pay linked to increased corporate performance or external market conditions? Which should it be linked to...and why? Do you think there is a shortage of qualified executive talent?

4) Based upon your reading of the evidence, how can executive compensation best be structured to increase the financial performance of the firm?

5) What differences do you see in how executives are selected and compensated in the UK as compared to the US?

6) As you peruse the assigned readings from Reinventing Your Board, pay special note to the sections labeled ASSIGNMENT. We will select several of these for discussion...


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