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Subject: Accounting theory Making managerial pay contingent on measures of managerial and/or firm performance motivates them to deliver good performance for shareholders. However, it also

Subject: Accounting theory
Making managerial pay contingent on measures of managerial and/or firm performance motivates them to deliver good performance for shareholders. However, it also burdens them with greater risks than they may like. How do organizations balance these two considerations when choosing managerial pay and performance measures?

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