Employment analysis

You are on the Board of Directors of a public company. The Board is about to hire a new CEO, Leslie, with
whom the Board is currently negotiating terms and conditions for her employment agreement. Leslie is asking
for a compensation package that includes an annual salary of $3 million, a performance bonus of up to $10
million per year, and stock that is valued at $100-$300 million. This total compensation is 4x richer than the
prior CEO had, who just died unexpectedly. Leslie is highly qualified for the role by any objective measure.
However, there were 3 other candidates, who were also very qualified, one of whom was seeking a
compensation package that was 50% less of what Leslie was asking to receive. What are some of the legal
issues or concerns you should be thinking about? Why are they significant? Try to argue the pros and cons of
both approaches.
What is stakeholder theory and why is it important? Give examples and be specific.
What is piercing the corporate veil? Why is it important?