If you decide to pay 1 percent of this amount (in Question 1) as a cash bonus, what performance level (what share price or shareholder value) in the table should trigger the bonus? Suppose you decide...

If you decide to pay 1 percent of this amount (in Question 1) as a cash bonus,

what performance level (what share price or shareholder value) in the table

should trigger the bonus? Suppose you decide to elicit high CEO effort when,

and if, medium luck occurs by paying a bonus should the company’s value rise

to $800,000,000. What criticism can you see of this incentive contract plan?