Managerial Incentives to Maximize Shareholder Wealth: Strategies, Benefits, and Challenges
Managerial incentives are crucial tools used by corporations to align the interests of managers with those of shareholders. By offering financial and non-financial rewards, companies encourage managers to make decisions that enhance shareholder value. This article explores the importance of managerial incentives, types of incentive programs, their impact on shareholder wealth, and potential challenges associated with these incentives.
1. What Are Managerial Incentives?
Managerial incentives refer to rewards and compensation plans designed to motivate managers to achieve corporate goals, particularly maximizing shareholder wealth.… Read more