Compensation Arrangements and Research Objectivity

James is an equity analyst at an investment firm, where he specializes in technology stocks. After joining the firm, he is presented with a unique compensation arrangement for his research efforts: he will receive a significant bonus tied directly to the performance of the technology stocks that he covers. Earlier in the year, James was vocal about his skepticism regarding the promising projections for a new tech startup that his firm has a considerable stake in. Now, he finds himself conflicted about the implications of this compensation structure on the integrity of his research.

During a team meeting, his supervisor emphasizes the importance of positive coverage on the stocks the firm supports, citing their financial interests. James feels pressured to alter his typically unbiased analysis in order to align with the firm’s expectations. According to the CFA Institute's Code of Ethics and Standards of Professional Conduct, which of the following actions should James prioritize to adhere to the ethical standards regarding his compensation arrangement?