... an optimal contract which aligns the interests of shareholders and managers (i.e. where marginal benefit to shareholders equals marginal cost of the contract). Points out that these contracts alone do not guarantee that managers will aim to maximize shareholders wealth: they should form only part...

... firms to compare the degree of alignment of their chief executive officer compensation packages and finds that average compensation changes for every $1,000 change in equity value are $33 for DCs and only $12 for MNCs. Analyses further to find out why and suggests that it is due to the higher‐valued...