1. Top Management Teams EMBA Class of 2017

2. Top Management Team

3. Who are they? What do they do (activities)?

4. Executive Decision Making Rational Decision-Making Model

5. Decision Biases

6. Fundamental attribution error Anchoring and adjustment Availability bias Escalation of commitment

7. Decision Biases

8. Correlation vs. causation Overconfidence Sampling bias (selection bias)

9. Executive Compensation

10. In most publicly traded firms, CEO compensation generally includes: Guaranteed salary Cash bonus Stock options Perks

11. Executive Compensation Highest paid 2015 CEOs: Zaslav (Discovery Comm), $156M Gabelli (Gamco), $88M Nadella (Microsoft), $84M Woodman (GoPro), $77M Ellison (Oracle), $67M Average CEOs S&P 500 Overall U.S. $10.5M Alabama $4.5M Average TMT (incl CEOs) Overall U.S. $6.1M

12. CEO-to-Worker Pay Gap 2014: 373-to-1 2015: Approx 400-to-1

13. Executive Compensation Are CEOs paid too much?

14. Executive Compensation