Transcript
Decision Biases
• Anchoring and adjustment• Availability bias• Escalation of commitment• Fundamental attribution error
Executive Compensation
In most publicly traded firms, CEO compensation generally includes:
• Guaranteed salary• Cash bonus• Stock options• Perks
Executive Compensation• How much do they make?• Highest paid 2014 CEOs:
• McKesson $131M• Lauren $67M• Vornado Realty $64M• Kinder Morgan $61M
• Average CEOs S&P 500• Overall U.S. $10.5M• Alabama $4.5M
• Average TMT (incl CEOs)• Overall U.S. $6.1M