Write a response regarding a student work. Your response can not simply say like I agree or disagree. you can not just critique student’s work. You should have your opinion on the questions. You may find out that they lack of something or something you want to add. Or you may argue and correct some points and say why you don’t agree. But you still need to come up with your perspective. I would provide you the topic(questions) and a student work. And you write a response.
The questions is as blow: 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?
Student work:
As we all know, the main element to align the interests of the shareholders and the management is the “target and benefits consistency”. Think about the question beyond the reverse side. The common reason that shareholders and management have a disagreement is different concentrating. For example, shareholders want more income and join in a new investment which a high yield investment with higher risk. At the same time, the management will more care about security and stability than the money return of this investment. The second simper example. During the dividend period, shareholders in a company will prefer to have profit in their own hand while the management wants to keep those profit for future using. So, it is truly hard to make the shareholders and the management have a true alliance. To have better relationships and cooperations between shareholders and the management, the best way is to allow the management have the right to purchase some fractional share. if some management has no sufficient capital to purchase the share, shareholders should also give appropriate shares to relevant management depends on their talents.
Sample Solution
