1. Shareholders determine the membership of the board of directors by voting. 2. Contracts with management and arrangements for compensation can be made so that management has an incentive to pursue shareholders' goals. 3. Fear of a takeover gives managers an incentive to take actions that will maximize stock prices 4. Competition in the managerial labour market may force managers to perform in the best interest of shareholders. Firm willing to pay the most will lure good managers.
Profit sharing, the more money the manager makes, the more the shareholders make.
Managers can be encouraged to act in their shareholders best interest by linking their pay to the stock price. When they are motivated by compensation then they will do things to make the share price increase.
01.employees 02.shareholders 03.managers/management
01.employees 02.shareholders 03.managers/management
Partially Yes. Enhancing Share holder wealth is one of the most important goals for managers.
Profit sharing, the more money the manager makes, the more the shareholders make.
Managers can be encouraged to act in their shareholders best interest by linking their pay to the stock price. When they are motivated by compensation then they will do things to make the share price increase.
No. Their pay arrangement can give you a good indication as to how well they will act on the shareholders' behalf.
government,shareholders and the managers
01.employees 02.shareholders 03.managers/management
01.employees 02.shareholders 03.managers/management
01.employees 02.shareholders 03.managers/management
The report is always directed the shareholders ,partners ,managers ,directors or members of board.
Partially Yes. Enhancing Share holder wealth is one of the most important goals for managers.
since the shareholders are the owners of the organization and therefore seek the attainment of their objectives.that is shareholders prioritizes the increase in their invested incomes and thus employ agents who happen to be managers in order to facilitate this.maximization of the company profit increase the value of the company`s and the shareholders will be assured of a favorable dividend,thus managers must attain the objectives of their principal first otherwise the principal agent problem will arise.
shareholders,creditors,suppliers,managers,investors,public and customers need accounting information for?
When you hold a share of a company, you are an investor in the company. You have invested your money in the company and it is the prime goal of the company's management to ensure that they earn sufficient revenue and profit for you "the investor" who has invested in the company. Ideally speaking, shareholders can be considered as owners of the company and the managers can be considered as employees working for the company.