Stanley Black and Decker, Inc. 1. Describe the incentive programs for each manager, what are the pros and cons of each plan? What is the effect of

Stanley Black and Decker, Inc.

1. Describe the incentive programs for each manager, what are the pros and cons of each plan? What is the effect of the plan on the financial projections of the merger?

2. What are some pitfalls related to revenue projections and savings from "synergies"?

3. Does the case discuss the reactions of shareholders and customers to the proposed merger? Should these groups matter or is the financial picture the over-riding aspect of consideration? What about corporate culture? Should differences in a corporate culture find their way into the analysis when a merger is being considered?

4. Consider the issue of executive compensation. Identify yourself with either the "executive compensation in America is outrageous" camp or the camp that supports maximum executive compensation as being part of our capitalist society and an important part of recruiting top-level executives who have a vested interest in the success of a company. Please provide one or two examples that support your position.