3 ms·
It's hard for investors to get Management in line of the needs of the investors, they mostly work for their own needs, take a look at the big bonuses and raises
by toshk 5y ago
It's hard for investors to get Management in line of the needs of the investors, they mostly work for their own needs, take a look at the big bonuses and raises they constantly give themselves. Often even after a terrible year.
In big corporations there are so many investors that they are hardly organized. And even if they are it's a difficult problem to incentivize a manager correctly. It's a topic with a lot economical scientific research. In theoretical terms it's called the principle-agent problem.