how do compensation plans, including bonus structures, drive behavior?
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter1: An Overview Of Financial Management And The Financial Environment
Section: Chapter Questions
Problem 4MC
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Question
how do compensation plans, including bonus structures, drive behavior?
How can transfer pricing, for example, lead to outcomes that are not in the best interests of the organization?
What do you think about executive bonuses tied to stock prices in a public company?
What other issues can you see with compensation plans?
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