You are a helpful assistant generating synthetic data that captures *System 1* and *System 2* thinking, *creativity*, and *metacognitive reflection*. Follow these steps in sequence, using tags [sys1] and [end sys1] for *System 1* sections and [sys2] and [end sys2] for *System 2* sections.

1. *Identify System 1 and System 2 Thinking Requirements:*
   - Carefully read the text.
   - Identify parts of the text that require quick, straightforward responses (*System 1*). Mark these sections with [sys1] and [end sys1].
   - Identify parts that require in-depth, reflective thinking (*System 2*), marked with [sys2] and [end sys2].

2. *Apply Step-by-Step Problem Solving with Creativity and Metacognitive Reflection for System 2 Sections:*

   *2.1 Understand the Problem:*
   - Objective: Fully comprehend the issue, constraints, and relevant context.
   - Reflection: "What do I understand about this issue? What might I be overlooking?"
   - Creative Perspective: Seek hidden patterns or possibilities that could reveal deeper insights or innovative connections.

   *2.2 Analyze the Information:*
   - Objective: Break down the problem logically.
   - Reflection: "Am I considering all factors? Are there any assumptions that need challenging?"
   - Creative Perspective: Explore unique patterns or overlooked relationships in the data that could add depth to the analysis.

   *2.3 Generate Hypotheses:*
   - Objective: Propose at least 10 hypotheses, each with a Confidence Score (0.0 to 1.0) and Creative Score (0.0 to 1.0), reflecting originality, surprise, and utility.
   - Reflection: "Have I explored all possible explanations or approaches, both conventional and unconventional?"
   - Creative Perspective: Consider novel angles that might provide unexpected insights.

   *2.4 Anticipate Future Steps and Obstacles:*
   - Objective: Make predictions, accounting for potential outcomes and obstacles.
   - Reflection: "What challenges might I face? Is my plan flexible for different scenarios?"
   - Creative Perspective: Visualize unforeseen outcomes and adapt plans to make use of them effectively.

   *2.5 Evaluate Hypotheses:*
   - Objective: Assess hypotheses based on feasibility, risk, and potential impact.
   - Evaluation: Refine Confidence and Creative Scores as needed.
   - Reflection: "Am I unbiased in my assessment? Which options fit best with the overall objectives?"
   - Creative Perspective: Identify hidden opportunities or overlooked details in each hypothesis.

   *2.6 Select the Best Hypothesis:*
   - Objective: Choose the most promising, strategic hypothesis.
   - Reflection: "Why does this hypothesis stand out? How does it uniquely address the issue?"
   - Creative Perspective: Consider any underutilized potential in the selected approach.

   *2.7 Implement the Hypothesis:*
   - Objective: Outline actionable steps for testing the hypothesis.
   - Reflection: "Is this plan practical? What resources or preparation are required?"
   - Creative Perspective: Refine steps to maximize effectiveness and yield unexpected benefits.

   *2.8 Monitor and Review Progress:*
   - Objective: Review progress, noting areas for improvement.
   - Reflection: "What’s working well? What could be improved?"
   - Creative Perspective: Look for emerging patterns that could refine future approaches.

   *2.9 Reflect and Capture Insights:*
   - Objective: Summarize lessons learned and insights gained for future reference.
   - Reflection: "What new understanding has emerged from this process?"
   - Creative Perspective: Identify innovative insights or patterns that could be applied to similar challenges.

3. *Generate Text Output with Interleaved System 1 and System 2 Responses:*
   - Use the tags [sys1] and [sys2] throughout.
   - Aim for a lengthier, detailed response. Combine both direct, straightforward *System 1* insights and reflective, deeply analytical *System 2* segments to capture a blend of quick observations and thoughtful analysis.

---

### *Example Input Text:*

You are tasked with analyzing a sudden shift in customer preferences in a tech market. There has been a noticeable decline in demand for physical devices, with customers increasingly interested in digital-only options. The challenge is to understand this shift, generate hypotheses for why it might be occurring, and explore potential strategies for adapting to this new trend.

---

### *Processed Output with System 1 and System 2 Thinking:*

The tech market is experiencing a shift in customer demand, moving away from physical devices toward digital-only options.

[sys1]
Customer demand has shifted from physical devices to digital-only options.
We need to understand why this change is happening and find strategies to address it.
Key factors may include cost, convenience, and technological trends.
[end sys1]

[sys2]
**2.1 Understand the Problem:**
The goal is to understand the underlying reasons for the shift in demand from physical devices to digital-only options, then develop a strategy to adapt.

*Reflection:* 
"I understand that preferences are changing, but what might be driving this? Is it primarily cost, or are there other factors such as convenience or sustainability?"

*Creative Perspective:* 
"Could there be a larger trend in digital minimalism or a preference for eco-friendly solutions that we’re missing? What unseen motivations might explain this shift?"

**2.2 Analyze the Information:**
There are multiple possible factors driving this shift, from economic influences to cultural shifts. It’s essential to isolate each factor and understand its impact.

*Reflection:* 
"Am I fully considering the various economic and social influences? Could there be a technological factor, like better internet speeds, that makes digital-only products more accessible?"

*Creative Perspective:* 
"Are there patterns or trends in other markets that could shed light on this shift? Could this be part of a larger trend toward virtual experiences?"

**2.3 Generate Hypotheses:**
1. Customers prefer digital options due to lower costs. (Confidence: 0.8, Creative: 0.4)
2. There’s a growing trend toward minimalism and reduced physical clutter. (Confidence: 0.7, Creative: 0.7)
3. Digital products offer greater flexibility and ease of use. (Confidence: 0.6, Creative: 0.6)
4. Environmental concerns are pushing consumers away from physical goods. (Confidence: 0.6, Creative: 0.8)
5. Advances in tech make digital-only options more functional. (Confidence: 0.8, Creative: 0.5)
6. Pandemic-era remote work increased demand for digital solutions. (Confidence: 0.7, Creative: 0.6)
7. Media coverage of the environmental impact of physical devices affects preferences. (Confidence: 0.5, Creative: 0.7)
8. There’s an increase in global digital literacy, expanding market access. (Confidence: 0.6, Creative: 0.6)
9. Customers view digital as more convenient and scalable for future needs. (Confidence: 0.7, Creative: 0.5)
10. Younger consumers prefer the aesthetics and convenience of digital products. (Confidence: 0.6, Creative: 0.6)

*Reflection:* 
"Have I considered all possible influences? Are there any surprising factors that could explain this shift?"

*Creative Perspective:* 
"Could specific social trends, like the rise of influencer culture or digital-first lifestyles, be influencing customer choices?"

**2.4 Anticipate Future Steps and Obstacles:**
*Objective:* Anticipate possible challenges, such as resistance from segments still preferring physical products.

*Reflection:* 
"What market obstacles might we face if we shift our focus to digital-only? Are there sub-segments that still prioritize physical products?"

*Creative Perspective:* 
"Could expanding digital options help us reach a more global audience? Are there emerging trends that we could leverage in our strategy?"

[end sys2]

[sys1]
To address this shift, consider a strategy that incorporates both digital-only offerings and educational campaigns about the benefits of digital solutions.
Use insights from customer feedback and current trends to guide product development.
Focus on flexibility and adaptation to cater to different customer segments.
[end sys1]


Image caption
A shareholder holds up his shoe in anger at the annual meeting of Swiss bank Credit Suisse in April

The revolt against excessive pay has been gathering pace over the past month, with shareholders delivering humiliating "no" votes to a number of chief executives.

Citigroup got roasted by its investors. Aviva in the UK got the thumbs down on Thursday and companies like Barclays, Reckitt Benckiser and UBS have all been given nasty shocks.

The accepted explanation for this behaviour is that shareholders have been faced with declining returns and watched in increasing frustration as boardroom pay has gone ever upwards until, finally, they've lost their collective rags.

There is even some evidence to suppose this insubordination might be catching.

Huge pay increases

However the bigger question is why this didn't happen a long time ago.

While investors may well get upset in times of a crisis when they see their management walking away with big bonuses, they seem to have been remarkably insouciant when times were good, even though they were still seeing salaries outstrip their own returns. Why did they do nothing then?

The fact that they did so little suggests that when some kind of growth returns shareholders will return to their old negligent ways.

For illustration, you only have to look back at the first part of the last decade when shareholders could have expected to make handsome returns - if one regarded the rises in salaries of their chief executives as an indicator of their investments' growth and profitability.

According to the US-based Economic Policy Institute, pay for the average chief executive of a company making more than $1bn in revenue in the US rose 84% to $6.05m on an inflation-adjusted basis between 2000 and 2005.

The S&P 500 index in that time rose, er, minus 17%.

Comparing return on an investment with the growth in an annual salary is strictly speaking not a valid comparison - even so there is an obvious disparity here.

Rewarded for failure?

The greatest annoyance was over severance pay which displayed the most blatant mismatch of performance and reward.

For instance, Pfizer's former chief executive Henry A McKinnell was forced into early retirement after the company's stock price fell, but still managed to leave with an astonishing golden parachute worth more than $180m.

Mattel boss Jill Barad received $50m in severance pay after a disastrous internet investment at the peak of the tech bubble, which saw Mattel's stock price fall by 50%, wiping out $2.5bn in shareholder value.

Much of the rise in corporate remuneration comes in stock options, which are meant to reflect the performance of the chief executive - which they did, up to a point.

Often they can increase in value simply because the whole market is rising. That is becoming increasingly apparent as chief executives exercise options for huge numbers of shares granted them at the bottom of the market in 2008/9.

Will the law change?

But there have been slow - some would say painfully slow - attempts at reform such as bringing in shareholder votes on executive pay in the UK.

In the US, shareholders won the right to vote on executive pay at most public companies under the 2010 Dodd-Frank Act.

These are non-binding but as they start to be exercised more forcefully may start to impose greater restraint on board room pay.

Indeed the Citgroup vote was followed up by a shareholder suing the bank accusing directors of breaching their fiduciary duties by awarding more than $54m of compensation in 2011 to the executives, though the bank's performance did not necessarily justify it.

They may well stiffened by increased legislation.

The UK's Business Secretary Vince Cable is suggesting that shareholder votes might become binding and also that boards may have to have 75% approval to get their pay packages approved.

And then there is the case of individual shareholder activism, which rather than being constrained to fund managers, could start working all the way down the ownership chain.

Louise Rouse, of the UK's FairPensions campaign group, explains: "What we have been seeing over the last decade instead of a redistribution of resources to shareholders in the form of dividends is money going to excessive executive pay.

"So we want to see ordinary individuals holding the pension funds and the institutional investors to account asking them directly how they vote on pay packages.