Tuong Dao

Daily Archives: June 26, 2020

How Metrics Are Used to Evaluate Management Performance and Award Bonuses

Performance Metrics And Management Evaluation

In publicly-traded companies, there is a separation between the ownership and their management. Executives may take actions that benefit them, with shareholders bearing the cost of their behaviors. These costs are generally known as agency costs. To prevent executives from making decisions that better themselves at the expense of stakeholders, companies, and boards of directors […]