Question: OK , tell me more about this. How does opposing any acquisitions solve our principal - agent problem? We slow down growth to make sure
OK tell me more about this.
How does opposing any acquisitions solve our principalagent problem?
We slow down growth to make sure that she can't hit the market share growth target.
This insures that her market share bonus is based on organic growth not acquisitions.
We penalize the CEO for any attempts to go after her own bonus over the company's interest.
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