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Archibald Smith Has Moved from an Upper-Middle Management Job at Chromatic

Question 90

Multiple Choice

Archibald Smith has moved from an upper-middle management job at Chromatic Array, Inc., to a similar position with Pixilair Corporation. The gap between CEO pay and the pay of other top executives at Chromatic was significantly larger than at Pixilair. What difference can Archibald expect?


A) The working relationships among the top management team will be more collaborative at Pixilair than at Chromatic.
B) The focus of Chromatic's board of directors will have been more on the creation of shareholder wealth than Pixilair's focus.
C) The rating of Pixilair by Institutional Shareholders Services will be less favorable than Chromatic's rating.
D) Pixilair will be more vulnerable to hostile takeover than Chromatic.

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