Answer the following questions. (use your own words, don’t use reference)
Financial management is all about the information and methodologies that enable management to make the best decisions. The question is, “best” for whom?
Management compensation is front-page news and a hotly debated political topic. While the windfall of certain executives attracts all the headlines, crafting an incentive system that motivates employees to serve the best interests of the shareholders is very challenging.
What elements of a compensation package do you feel would best help align the interests of the shareholders and the management?
Sample Solution