Subject category:
Strategy and General Management
Published by:
Ivey Publishing
Version: 2000-11-09
Length: 3 pages
Data source: Generalised experience
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Abstract
The chief executive officer (CEO) of a telecommunications company has been managing the company while residing out of the country. The board of directors has concerns about this and has asked him to move, but his resulting compensation demands are surprisingly high. The board of directors must decide whether to meet his demands or to look for a new CEO. Questions regarding types of management compensation, value measurement and comparability within industry are raised, as well as a discussion of the cost of a change in senior management to the company and its shareholders.
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Abstract
The chief executive officer (CEO) of a telecommunications company has been managing the company while residing out of the country. The board of directors has concerns about this and has asked him to move, but his resulting compensation demands are surprisingly high. The board of directors must decide whether to meet his demands or to look for a new CEO. Questions regarding types of management compensation, value measurement and comparability within industry are raised, as well as a discussion of the cost of a change in senior management to the company and its shareholders.