Sentence examples for alignment of managers from inspiring English sources

It is tempting to rationalize these arrangements by saying that they ensure an alignment of managers and shareholders: Managers win only when shareholders win.

The more of a family's wealth that is tied up in the business the closer the alignment of managers' and shareholders' interests.

Further, these charts don't say anything about the alignment of managers' and shareholders' interests with those of society or taxpayers.

Here we see more evidence of compensation that is less sensitive to shareholder gains, but by and large the evidence is consistent with an alignment of managers' and shareholders' interests.

We examine the effect of chief executive officer (CEO) compensation incentives on corporate cash holdings and the value of cash to better understand how compensation incentives designed to enhance the alignment of manager and shareholder interests could influence stockholder-bondholder conflicts.

But the most compelling finding concerns the actual alignment of fortunes of managers and shareholders.

My colleague Gian-Luca Clementi and I have studied both the theory and the facts of executive compensation in the U.S. We use a total compensation concept that comes as close as possible to capturing the alignment of incentives of managers and shareholders in the long run.

"The essential point we're looking at here is the alignment of interests between managers and shareholders," said Brian Mattes, spokesman and principal at the Vanguard Group.

Third, while it is not clear that hedge fund activism harms the long-term-value of the firm, it is generally accepted that activist shareholders reduce managerial agency costs, and therefore lead to a better alignment of incentives between managers and investors.

We show that RPE allows for a better alignment of interests between shareholders and managers, thereby reducing agency costs and rendering firms more productive; but it also leads managers disproportionately to choose investments that are correlated across firms, thus increasing systemic risk.

Just as freedom from accountability has a tendency to make shareholders indifferent to broader and longer-term considerations, so agency theory's recommended alignment between managers' interests and those of shareholders can skew the perspective of the entire organization.