Explain two or more motivational tools

Reference no: EM132642836

Stockholders and Management Interests

Stockholders and managers want the same thing, don't they? Theoretically, yes, but in reality, it does not always work that way. Too often, managers' personal goals compete with shareholder wealth maximization. Sometimes, managers pay themselves excessive salaries or bonuses that are at odds with the idea of shareholder wealth maximization. How many times have you seen in the news examples of CEO excesses or outlandish spending on events or things that definitely do not help the overall goal of stockholder wealth maximization?

To prepare for this Discussion, think about a time in your professional experience when a decision was made that seemed to benefit a specific manager or small group of managers and not the overall corporation. If you do not have professional experience directly related to this topic, research a situation in the news where this theme is demonstrated. Consider the outcomes of such an imbalance between manager and stockholder interests and research on how to avoid such a situation.

Question 1: Describe the situation from either your professional experience or your research.

Question 2: Explain two or more motivational tools that can aid in aligning stockholder and management interests.

Question 3: Explain how your selected tools are effective in resolving potential conflicts among managers and stockholders.

Support your discussion with appropriate academically reviewed articles. Use APA format throughout.

Reference no: EM132642836

Questions Cloud

Design a test or assessment procedure : Describe and discuss the testing context: the institutional setting, intended candidates, level of proficiency, age range, and whatever further details

Cryptographic controls in our applications : We do not pay close enough attention to designing our security mechanisms while we implement cryptographic controls in our applications

Summarize the significant changes : Summarize the significant changes and impact on financial reporting with AASB 1031 Materiality (issued by the Australian Accounting Standards Boards

Technologies employed by wireless devices : What are the various technologies employed by wireless devices to maximize their use of the available radio frequencies?

Explain two or more motivational tools : How your selected tools are effective in resolving potential conflicts among managers and stockholders. Explain two or more motivational tools

Describe how cloud-based data storage works : Describe how cloud-based data storage works. Define and describe NAS. List the pros and cons of cloud-based data storage.

Growth in telecommuting and mobile work arrangements : Given the growth in telecommuting and other mobile work arrangements, how might offices physically change in the coming years?

Considering importance of data in organization : Considering the importance of data in organization, it is absolutely essential to secure the data present in the database.

Prepare the income statement and balance sheet : The business was started when the company received $49,500 from the issue of common stock. Prepare the income statement and balance sheet

User Account

All Pages