The important point in making with shareholders is the incentive plan which is designed to maximize - The important point in making with shareholders

The important point in making with shareholders is the incentive plan which is designed to maximize

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The important point in making with shareholders is the incentive plan which is designed to maximize the wealth of the shareholder. It is achieved by providing the employees with an incentive to be in the company for long, hence reducing the expensive employee turnovers and increasing the profitability of the company. By using the stock as an incentive plan, employees want to find ways by working productively and make the company profitable. The advantage to the shareholders and employees will have a greater price of the stock. By making employees shareholder it will enable them to have an interest in the organization so they will work hard so as to increase the profits of the organization since they will take part in
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Unformatted text preview: the profit-sharing in the form dividends He rests an important point to make with the shareholders is that this incentive plan is designed to maximize shareholder value. Thesis achieved by giving employees an incentive to stay with the company longer, thereby reducing costly employee turnovers and increasing the company's portability. Also, by using the stock options as an incentive plan, employees will want to know ways to work more productively and make the company more portable I would do so by giving employees an incentive to stay with the company longer, this will reduce the costly employee turnovers and increase the company's profitability....
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  • Summer '00
  • zack

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