Sullivan said to his manager, "Theo, I need to tell you that I have received an unsolicited offer from a competitor. I've enjoyed my eight years at Smith Enterprises, and I'd like to stay. But the offered salary is 20 percent higher than my current salary. The other firm cited what I have learned this past year on the public works job as a particularly valuable skill." Sullivan is a highly valued employee, and Theo has been grooming him as his successor. If Theo were to consider market rates as an important indicator of worth in responding to Sullivan, Theo would most likely
A. transfer Sullivan to a division in another city where the competitor does not have an office.
B. terminate Sullivan's employment for insubordination and lack of loyalty.
C. explain to Sullivan that internal resource considerations establish Sullivan's salary.
D. contact the competitor and inform them that Sullivan is "off limits."
E. seek to retain Sullivan by increasing his salary by 25 percent.