EDITOR’S NOTE: Who is rowing your investment boat?

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 63%

Sverige Nyheter Nyheter

The debate around the alignment of executive remuneration with shareholder interests is starting to get heated

. It’s a prickly topic. But there is a growing view that it is far more prudent to pick a share in a company where executive management has real skin in the game rather than to invest in a business that is managed by professionals who are paid many millions of rand for their services but own only a few or no shares themselves.

If a CEO stands to earn more in dividends and share price gains than from their executive package, it stands to reason that they will be focused on the key operating metrics that will ensure sustainable long-term performance. Capital allocation will be carefully considered. On the other hand, the criteria used to measure professional managers’ performance might not always be in shareholders’ longer-term interests.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 12. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

Ramaphosa welcomes R950m hotel investment in EkurhuleniNew Radisson hotel and conference centre will open next month 🤔🥴
Källa: BDliveSA - 🏆 12. / 63 Läs mer »