TRW Corp. hired a new CEO and agreed to pay her $20,000 plus stock options for 1 million shares annually, hoping this would provide a huge incentive for the CEO to turn the company's fortunes around. Which of the following events might act as a disincentive for the new CEO?
A) the personal marginal tax rate decreased slightly
B) interest rates increased by 3% during the year
C) inflation rates fell a bit during the year
D) sales opportunities arose in a foreign country
E) a new company started to compete against TRW
Correct Answer:
Verified
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