Decision Sciences
4 years ago

Top managers' pay tied to company value boosts shareholder interests.

SSRN Electronic Journal
Contradictions of Corporate Top Management Motivation by Economic Value Added
Sergey Yashin, Yuriy Trifonov, Egor Koshelev

Paper Summary

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The article discusses how to motivate corporate top managers effectively by adjusting the economic value added method. By comparing this method with others, the researchers aim to align the interests of top managers with those of company owners. They suggest that linking top managers' pay to the modified economic value added can encourage them to work towards long-term corporate goals and increase the company's value.