Student Problem Manual To Accompany Fundamentals Of Corporate Finance
Student Problem Manual To Accompany Fundamentals Of Corporate Finance
10th Edition
ISBN: 9780077479442
Author: Stephen Ross
Publisher: McGraw-Hill/Irwin
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Chapter 1, Problem 16CRCT
Summary Introduction

To think critically about: Whether the compensation to the top managers is higher.

Introduction:

The managers will often have an important economic incentive to maximize the value of shares. Commonly, the first incentive is that the managerial compensation is often tied to the financial performance in common to offer the share value.

The second incentive that the managers relate to the prospects of the job is to promote the top performers in the firm.

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