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i think that the CEO works for the shareholders.

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14y ago

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How does agency problem affect the relationship of financial manager with the company?

agency problem affects the financial manager relationship with the company by means of trust. if we are going to study the principal-agent relationship (principals=shareholders ; agent=managers,CEO,BOD), the agent will stand for and on behalf of the principal with the accompany of trust and confidence by the principals, but when agency problem occur where the agents are planning to pursue some objectives that are attractive to them while not beneficial for the principal the gap between the shareholders and the management team were created...


How did Junipers CEO justify repricing the employees stock options to the shareholders?

Juniper's CEO justified the repricing of employee stock options to shareholders by emphasizing the need to retain and motivate key talent amid a competitive labor market. He argued that the repricing would align employee interests with those of shareholders, ultimately driving long-term company performance. Additionally, he highlighted the strategic importance of attracting and keeping skilled employees to foster innovation and growth within the company.


Who manages a corporation?

A corporation is ran by the Chief Executive Office, the CEO is held accountable to the board of directors, and the board of directors follow the demands of the shareholders.


Who owns FedEx?

Rothschild family is NOT the owner. Fredrick W. Smith is the founder and present CEO of FedEx a public corporation owned by equity shareholders!!


Who runs a public limited company?

A public limited company (PLC) is run by a board of directors, which is elected by the shareholders. The board is responsible for making strategic decisions and overseeing the company's operations. Day-to-day management is typically handled by an executive team, including a CEO, who report to the board. Shareholders have the power to influence company policies through their voting rights at annual general meetings.

Related Questions

Name of Indian companys and CEO?

name of Indian company's and ceo


Do the shareholders decide who will be the CEO?

The board of directors, who are supposed to represent the owners/shareholders appoint the CEO. Ownership/shareholding of large public companies tends to be fragmented so only large shareholders may have some say.


Who owns homeserve?

various shareholders, including ceo Richard Harpin


What are the owners of a corporation called?

The owners of a corporation are called the CEO.


Who is the ceo of satyam?

Tech Mahindra Ltd. Plus public shareholders.


Who do CEO report to?

CEOs typically report to the board of directors of the company. The board oversees the CEO's performance and ensures that the company's strategic direction aligns with the interests of shareholders. In some organizations, particularly in smaller firms, the CEO may also communicate directly with shareholders or other key stakeholders.


Can a shareholder sue a CEO for incompetence?

Yes, a shareholder can sue a CEO for incompetence, typically through a derivative lawsuit. This type of lawsuit asserts that the CEO's actions or negligence harmed the company and, by extension, the shareholders. However, proving incompetence can be challenging, as it often involves demonstrating that the CEO breached their fiduciary duty or acted outside the bounds of reasonable business judgment. Shareholders usually need to show that the CEO's incompetence caused significant financial harm to the company.


What is IBM ownership?

IBM is a public company, owned by its Shareholders. The CEO of IBM is Samuel J. Palmisano.


Who is the owner of McDonald?

Steve Easterbrook is the current CEO of McDonald's.


Who does the CEO report to?

The CEO typically reports to the board of directors. The board is responsible for appointing and overseeing the CEO, ensuring that the company is being managed effectively and in the best interests of shareholders.


How does agency problem affect the relationship of financial manager with the company?

agency problem affects the financial manager relationship with the company by means of trust. if we are going to study the principal-agent relationship (principals=shareholders ; agent=managers,CEO,BOD), the agent will stand for and on behalf of the principal with the accompany of trust and confidence by the principals, but when agency problem occur where the agents are planning to pursue some objectives that are attractive to them while not beneficial for the principal the gap between the shareholders and the management team were created...


Who is the owner of the Apple Company?

The owner of the Apple Company is the shareholders, as a group. The CEO was Steve Jobs, but he just died on 5 October 2011 now Tim Cook is the CEO.