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Specification:

  • Business Objectives, Labour Markets

Click to watch the short video below and then answer the questions:

Why did Carlyle’s CEO resign?

  • Using the video, explain the principal-agent problem

  • Discuss how stock options are used to overcome the principal-agent problem

  • Evaluate whether the pay of CEOs like Kewsong Lee can be justified from an economic perspective

Gavin Simpson and Pete Clift, Economics In Ten podcast

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