You are the Director of HR. The board of directors have asked your opinion about the compensation they plan to offer their candidate for the CEO position. You think the basic salary with incentives is extraordinarily high. Use the Equity Theory to explain how the employees are likely to interpret the high pay of CEOs. (Make sure you demonstrate your understanding of the concept.)

Petra contracted to paint bret’s house for $2,000. after beginning the job, petra realizes that the house is really quite big, and she’s not going to make enough profit, so she tells bret she wants another $500 to finish the job. bret doesn’t want to pay more, but he’s afraid that if she walks off the job, he’ll have trouble finding someone else to finish it, so he agrees. is bret legally obligated to pay the extra $500?