Passage Summary: If a consultant is helping decide a boss's pay but also wants to keep doing other business with that boss's company, the boss will probably end up getting paid too much.

Conclusion: No conclusion (Fact Set/Principle).

Reasoning: A conflict of interest exists when a consultant setting an executive's pay also has other business dealings with that executive's company, leading to likely overcompensation.

Analysis: To apply this principle correctly, we need a scenario that hits every 'requirement' mentioned: an executive, a compensation package determined by an external consultant, and that same consultant having other business interests with the company. The correct application should then conclude that the executive is likely overpaid. Be careful to ensure the consultant's 'other business interests' are with the company itself, as that is the specific trigger for the predicted overcompensation.