Compensation
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College Retirement Equities Fund (CREF) is a pension fund that has billions of dollars invested in the stock market. Fund participants recently voted on a proposal that would have placed strict limits on the amount of compensation paid to CREF executives. Why do you think 75 percent of the participants voted against the proposal?
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Solution Summary
The solution evaluates a main point behind executive compensations.
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If strict limits are placed on the amount of compensation paid t CREF executives, then those executives will have no incentive to improve the performance of the ...
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