Strong incentives to maximize the firm value

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Sometimes managers do not have strong incentives to maximize the firm value. At the same time development of the control systems can be both difficult and expensive. In this case compensation schemes based on the performance measurement can be very helpful in order to eliminate the potential conflict between owners and the measurement of the experience with the analysis of different compensation systems and their advantages and disadvantages from the owner point of view?

Reference no: EM13732874

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