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The Wall Street Journal ("Boards Tie CEO Pay More Tightly

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Essay

The Wall Street Journal ("Boards Tie CEO Pay More Tightly to Performance," 2/21/06,p.A1)reports an increase in the number of major U.S.corporations that tie the CEO's stock options to performance targets.Comment on the wisdom of this trend,given the separation of ownership and control in U.S.corporations.


Definitions:

Coral Reefs

Diverse underwater ecosystems held together by calcium carbonate structures secreted by corals, serving as habitats for a vast array of marine life.

Calcium Carbonate

A chemical compound with the formula CaCO3, found in rocks as the minerals calcite and aragonite and is the main component of pearls and the shells of marine organisms, snails, and eggs.

Coral Polyps

Tiny, soft-bodied organisms that form the structure of coral reefs through their skeletal deposits.

Boreal Forest

A vast biome characterized by dense forests of coniferous trees, located in northern regions of North America, Europe, and Asia, also known as taiga.

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