Creating Contracts to Avoid Moral Hazard Presentation

Click here to ORDER an A++ paper from our MASTERS and DOCTORATE WRITERS: Creating Contracts to Avoid Moral Hazard Presentation

Creating Contracts to Avoid Moral Hazard Presentation

escription

 

 

Oil Company X is a large oil refinery which has been expanding and taking on new investment projects. Recently, they have considered building a pipeline that stretches across the United States, from Canada to New Orleans.

The Board is in the process of hiring a new CEO for the firm. They are concerned about the problem of moral hazard and want to know how they can reduce or eliminate this via contract. They have tasked you, a team member in the Cost Department, with analyzing the following possible payment systems for the new CEO:

Fixed fee: The new CEO will receive a fixed wage.

Profit sharing: The new CEO receives 15% of the firm’s profit, with no wage. The current value of the firm’s profit, multiplied times 0.15, is equivalent to the fixed fee wage in option 1.

  1. Stock Options: The new CEO receives a base salary, with additional stock options tied to total profits. The base salary is 10% lower than the fixed fee from option 1, with the additional 10% given in stocks.
  2. Bonuses: The new CEO receives a base salary, with an additional stock bonus which is tied to total revenues. The base salary is 10% lower than the fixed fee from option 1, with the additional 10% given as a bonus tied to the total revenue from the prior year.
  3. Stock Options and Bonus: The new CEO receives a base salary, with additional stock options tied to total profits. The base salary is 10% lower than the fixed fee from option 1, with an additional 5% given in stocks and 5% given in the form of a bonus.

Click here to ORDER an A++ paper from our MASTERS and DOCTORATE WRITERS

Your assignment woes end here!

Who We Are
We are a professional custom writing website. If you have searched for a question and bumped into our website just know you are in the right place to get help in your coursework.

Do you handle any type of coursework?

Yes. We have posted over our previous orders to display our experience. Since we have done this question before, we can also do it for you. To make sure we do it perfectly, please fill out our Order Form. Filling the order form correctly will assist our team in referencing, specifications, and future communication.

Is it hard to Place an Order?

ORDER NOW FOR AN ORIGINAL PAPER ASSIGNMENT

1. Click on the  “Order Now” on the Main Menu and a new page will appear with an order form to be filled.

2. Fill in your paper’s requirements in the “PAPER INFORMATION” section and the system will calculate your order price/cost.

3. Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.

4. Click “FINAL STEP” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.

100% Reliable Site. Make this your Home of Academic Papers.

SCORE A+ WITH HELP FROM OUR PROFESSIONAL WRITERS: ORDER NOW FOR AN ORIGINAL PAPER ASSIGNMENT

Always Order High-Quality Academic Papers from HERE 

5. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it. 

We will process your orders through multiple stages and checks to ensure that what we are delivering to you, in the end, is something that is precise as you envisioned it. All of our essay writing service products are 100% original, ensuring that there is no plagiarism in them. The sources are well-researched and cited so it is interesting. Our goal is to help as many students as possible with their assignments, i.e. our prices are affordable and services premium.

Looking for a Similar Assignment? Order a custom-written, plagiarism-free paper

Your assignment woes end here!

Get a 25 % discount on an order above $ 100
Use the following coupon code :
Corgi25