Question
A good way to align the incentives of a CEO with those of shareholders is to make his pay directly related to earnings (or cash
A good way to align the incentives of a CEO with those of shareholders is to make his pay directly related to earnings (or cash flows) per share (EPS), since an increase in earnings always leads to an increase in shareholder value.
False
True
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
8th edition
013342362X, 978-0133423624
