Share
Explore BrainMass

Corporate compensation and new regulations considering state

Primary Objective of the Corporation

The primary objective of the corporation is value maximization. Given the recent collapse and bailouts of several institutions one could argue management seeks personal gains in lieu of increasing value to the shareholders. The President has even issued several statements concerning his thoughts on corporate greed.

What are your thoughts regarding corporate compensation and the potential need for new regulations given the current state of the economy, corporate bankruptcies and bailout of institutions?

Solution Preview

See attached file.

Let me give you some pointers for you to complete your paper: The primary objective of the corporation is value maximization for its shareholders, however, as there is separation between owners and managers, agency problem is a well known fact in the corporate world. Agency problem is primarily dis-alignment between the interests of the shareholders and the management of the company. Shareholders, regulators, Government, and policy makers regularly come out with new regulations, policies and arrangements to ...

Solution Summary

This post shows the thoughts regarding corporate compensation and the potential need for new regulations given the current state of the economy, corporate bankruptcies and bailout of institutions

$2.19