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Compensation Cap

The Manager of your company's pension fund is compensated based entirely on fund performance; he earned over $1.2 million last year. As a result, the fund is contemplating a proposal to cap the compensation of fund managers at $100,000. Provide an argument against the proposal.

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If the fund's manager compensation is capped at $100,000 he will not have any incentive to increase the performance ...

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The solution does a great job of answering the question. The solution is brief and concise and very easy to follow along. It can be easily understood by anyone with a basic understanding of the topic. Overall, an excellent solution.

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