Global Business 3rd Edition by Mike Peng

Exercise 17

ON ETHICS: As a chairman/CEO, you are choosing between two candidates for one outside independent director position on your board. One is another CEO, a longtime friend whose board you have served 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. But he may try to prove his theory that CEOs are overpaid-in other words, your compensation can be on the line. Whom would you choose?