The board of directors of a firm believes that senior management should be rewarded for achieving the company's objectives. At the conclusion of each year, the board determines bonus payments depending on share price growth. Managers will get bonuses in the form of shares, which they may retain or sell. What are the consequences of this kind of incentive scheme?

The board of directors of a firm believes that senior management should be rewarded for achieving the company's objectives. At the conclusion of each year, the board determines bonus payments depending on share price growth. Managers will get bonuses in the form of shares, which they may retain or sell. What are the consequences of this kind of incentive scheme?

Information Technology Project Management

9th Edition

ISBN:9781337101356

Author:Kathy Schwalbe

Publisher:Kathy Schwalbe

Chapter7: Project Cost Management

Section: Chapter Questions

Problem 1QQ

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