Global Strategy 3rd Edition by Mike Peng

Exercise 3

ON ETHICS: As a chairman/CEO, you are choosing between two candidates for one outside director position on your board. One is another CEO, a long-time friend whose board you have served on for many years. The other is a known shareholder activist whose tag line is "No need to make fat cats fatter." Placing him on the board will earn you kudos among analysts and journalists for inviting a leading critic to scrutinize your work. However, he may try to prove his theory that CEOs are overpaid. Who would you choose? Explain your rationale for your choice in a short paper.