Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9780077861704
Author: Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Bradford D Jordan Professor
Publisher: McGraw-Hill Education
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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 share value.

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

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