Question: When Samuel started recruiting Alice, he knew that she would provide the expertise the department needed and he knew that she would be expensive.

When Samuel started recruiting Alice, he knew that she would provide the expertise the department needed and he knew that she would be expensive. But now her demands seem to be escalating out of control. So far, Samuel has upped the already high salary, added extra vacation time, and increased the number of her stock options. Now Alice is asking for an extra performance based bonus. Samuel reviews the list of other candidates. The closest qualified applicant is very eager for the job but lacks the experience that Alice would bring. Samuel prefers Alice, but he is uncomfortable with her increasing demands. Should Samuel say no on principle and risk losing her? Or should he agree to her latest request and hope it is the last? Explain what you would do in this situation.

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