Amber, a publicly held corporation (not a TARP recipient), currently pays its president an annual salary of $900,000. In addition, it contributes $20,000 annually to a defined contribution pension plan for him. As a means of increasing company profitabil- ity, the board of directors decides to increase the president's compensation. Two pro- posals are being considered. Under the first proposal, the salary and pension contribution for the president would be increased by 30%. Under the second proposal, Amber would implement a performance-based compensation program that is projected to provide about the same amount of additional compensation and pension contribu- tion for the president. a. Evaluate the alternatives from the perspective of Amber, Inc. b. Prepare a letter to Amber's board of directors that contains your recommendations.