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Amber, a publicly held corporation, currently pays its president an annual salary of $900,000. As a means of increasing company profitability, the board of directors increased the president's compensation effective January 1, 2017, with a performance-based compensation program. This program increased the president's compensation by $300,000 in 2017, and it is projected to increase her compensation by approximately $350,000 in 2018.

1. Prepare a letter to Amber's board of directors that identifies the amount of compensation that will be deductible by Amber in 2018 and explains whether any changes should be made to the president's compensation plan in 2018. Address the letter to the board chairperson, Angela Riddle, whose address is 100 James Tower, Cleveland, OH 44106.

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The letter should be on company letter head and with the designations of the sender, president and the recipient which is yet not included in the attached letter due to unavailability of data. Below is the required letter in typed form. Word file attached as well for better reference.

 

Amber

[Street Address, City, ST ZIP Code]

[Phone]

[Email]

[Website]  

Angela Riddle

Board Chairperson | Amber

100 James Tower, Cleveland, OH 44106.

Dear Miss Angela,

Hope this letter find you in best of your health. Respectfully, it is to let you know that annual compensation of Mr. [name], president [department name] is increased by $300,000 w.e.f Jan. 01, 2017. It is projected to increase $350,000 approx. in 2018. For general information, it is also informed that his annual salary is $9,00,000.

Please review the above mentioned details and let us know if any change is required in the current compensation or planned compensation for 2018.

Warm regards,

Name Here

Your Title

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