Show the goals of managers, Financial Accounting

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Q. Show the goals of managers?

The goals of managers may conflict with the objectives of shareholders particularly with the objective of maximisation of shareholder wealth. Management payment package are one way in which goal congruence between managers and shareholders may be increased. Such packages must motivate managers while supporting the achievement of shareholder wealth maximisation. The following factors must be considered when deciding on a remuneration package intended to encourage directors to act in ways that maximise shareholder wealth.


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