Having the manager's compensation tied to the company's performance increases the agency problem that corporations face.

Name: Having the manager's compensation tied to the company's performance increases the agency problem that corporations face.
Brand: Quizplus
Rating: 4.8 (27 reviews)

Question

Quizplus · Accepted Answer

Tying a manager's compensation to the company's performance is actually a strategy to align the interests of the managers with those of the shareholders, thereby reducing the agency problem.

Having the Manager's Compensation Tied to the Company's Performance Increases