Tag Archives: Kozlowski

What are three techniques stockholders can use to motivate managers to try to maximize their stock’s long-run price? Should managers focus directly on the actual stock price, on the stock’s intrinsic value, or are both important? Explain.

CONFLICTS BETWEEN MANAGERS AND STOCKHOLDERS7 It has long been recognized that managers’ personal goals may compete with shareholder wealth maximization. In particular, managers might be more interested in maximizing their own wealth rather than their stockholders’ wealth, hence pay themselves excessive salaries. For example, Disney paid its former president, Michael Ovitz, $140 million as a […]