You are attending the annual stockholder's meeting of PIC Company. A fellow stockholder points out that the manager of PIC earned 100,000 last year, while
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You are attending the annual stockholder's meeting of PIC Company. A fellow stockholder points out that the manager of PIC earned 100,000 last year, while the manager of a rival firm, CUP Enterprises, earned only 50,000. A motion is made to lower the salary of PIC's manager. Given only this information, what should you do? Be specific in your response
In the above scenario, it is not given that what is the size of both the companies. As CUP is rival company to PIC it may be smaller in size compared to PIC, which justifies the lower earnings of manager in CUP. Along with the size of company, net income of company also matters and CUP might have lower profits compared to the PIC due to which manager of PIC is earning more. Even if size and profit of both the companies are taken together,...