Write a brief report to the firms remuneration committee

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Reference no: EM13340479

Assume that you have been appointed as a consultant to Intellec-Morph Design Limited (IMDL), a successful firm in the computer software business, to develop a management compensation scheme that will motivate managers to maximize the value of the firm for shareholders. You are permitted to construct individual agreements for the senior executives of IMDL.

REQUIREMENTS

You are required to write a brief report to the firm's remuneration committee covering the following issues:

1. How (and why) individual remuneration packages of executives can be structured to motivate managers to maximize equity value?
2. The extent to which different forms of compensation can be structured to suit the individual attributes/characteristics of managers
3. The various mechanisms that might be employed to monitor the performance of managers and thus provide assurances to the IMDL committee that incentive schemes are working.
4. The potential forms of ex-post opportunistic behaviour that managers may still engage in despite the existence of performance contracts?

Your report must include explanations of relevant theories which might support the basis of your conclusions/recommendations.

 

Reference no: EM13340479

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