MasterCraft Boat Holdings states that management can receive stock awards based upon performance, over a two-year period,
Question:
MasterCraft Boat Holdings states that management can receive stock awards based upon performance, over a two-year period, of specified key strategic initiatives that should drive long-term shareholder value; market share, Customer Satisfaction Index (“CSI”) results and dealer inventory turnover metrics, as well as a total shareholder return (“TSR”) modifier during the performance period.
My interest is in the "dealer inventory turnover metrics." I think MasterCraft sells through independent dealers.
Required:
Provide a reason or two as to why (a) a MasterCraft executive has influence over a dealer's inventory turnover and (b) a MasterCraft executive does NOT have influence over a dealer's inventory turnover.
What is the effect of having the executive rewarded for things that are somewhat under the executive's control and somewhat not under the executive's control?
Expert Answer:
Prov ide a reason or two as to why a a Master Craft executive has influence over a dealer s inventor... View the full answer
