DQ-1 - Rothschild, Medici, Ford, Thomson, Krupp, and...

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DQ 1 - Assuming that an agency problem exists in a corporation, do you think senior executives are adequately compensated? ANSWER:- in the state of the agency problems the people involved such as stockholders , board of directors and the company management have different ideas for the business development so all the people are affected in the pipeline. At this stage the senior executives are thought to be compensated as much as possible but not probaly adequate for the better running of the company. They are supposed to resolve the problems soon by their skills and experience in the field . they need to be facilitated by the things at that ime needed. The firms run by the families are involved and important in free market econimics the common names are
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Unformatted text preview: Rothschild, Medici, Ford, Thomson, Krupp, and Mitsubishi . these groups are in general stuck up in the agency problems as the people involved most commonly belong to the same family . thoughts of all the people is in good intension but with differences . Jensen and Meckling (1976), Shleifer and Vishny (1997), suggest that for the better cororate governance corporate ownership is must . while La Porta, Lopez-de-Salines, and Shleifer (1999) suggest a different thing that the corporate governance changes greatly on the development .there are conflicts in these two for the same reason so need to be compensated . firstly it is must as the people have been long time of the part of the corporation and secondly they will be profitable for future. ....
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This document was uploaded on 05/02/2011.

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