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Topic 538 - The following appeared in a speech by a stockholder of Consolidated Industries at the company's annual stockholders' meeting. "In the computer hardware division last year, profits fell significantly below projections, the product line decreased from twenty to only five items, and expenditures for employee benefits increased by 15 percent. Nevertheless, Consolidated's board of directors has approved an annual salary of over one million dollars for our company's chief executive officer. The present board members should be replaced because they are unconcerned about the increasing costs of employee benefits and salaries, in spite of the company's problems generating income." Discuss how well reasoned . . . Etc.




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