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Subjects>Sports>Athletic Coaches and Managers

What are some of the pitfalls of a company basing a managers or CEOs compensation on the companys earnings?

Anonymous

∙ 10y ago

Updated: 9/19/2023

The biggest pitfall is the temptation to fraudulently inflate earnings in order to 'earn' more compensation.

Another is that it encourages managers to focus on short-term profits rather than long-term growth

Wiki User

∙ 10y ago

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