Aligning Senior Executive and Shareholder Interests through Long Term Incentive Payments

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Many senior executives, including CEO’s have a remuneration packages based in inventive payments linked to share prices. The writer looks at this practice and argues that despite the aim to create a long term orientation, there is still a conflict of interests. The paper uses agency theory and empirical evidence to assess the potential of this approach and the way that it is manifesting in the real world. Seventeen sources are cited in this 12 page paper.