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Managerial incentives refer to rewards or compensation structures designed to motivate managers to achieve specific performance goals that align with the interests of the organization and its shareholders. These incentives can include bonuses, stock options, profit-sharing, and other financial rewards, as well as non-monetary benefits like recognition and career advancement opportunities. By aligning managerial interests with company performance, these incentives aim to enhance productivity, drive strategic initiatives, and ultimately improve organizational success.

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