As head of the compensation committee of a public company, you are responsible for selecting a compensation

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As head of the compensation committee of a public company, you are responsible for selecting a compensation consultant. One of two finalists for the job is Moran & Moran, a two-person boutique headed by James Moran, former chief of research at the Institutional Research Council, a proxy advisory firm. Moran & Moran has only been operating for a year and is hungry for your business. James Moran is recommended to you by your company’s chief financial officer, who has developed a high opinion of his capabilities during their time together as board members of the city’s opera company. The other finalist is Bigger & Best, a large management consulting firm. Compensation advice is one of many services offered by this latter firm. Bigger & Best has just completed a project advising your company how to position some of its brands in emerging markets. Four junior executives at your company started their careers at Bigger & Best; in your judgment they are some of the most promising officers at the firm. Moran & Moran’s bid is about 10 percent below that of Bigger & Best. Which firm should you select?

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