Dodirectorsoverpaytorecruitnew managersmccoy

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Unformatted text preview: Copyright 2013 Copyright 2013 Director/Manager Relationship Do Directors overpay or underpay current managers? Do Directors overpay to recruit new managers? (McCoy) Do Directors terminate managers at optimal times Apple ­ Jobs Coca Cola… Copyright 2013 Copyright 2013 Director/Manager Con’t: What influences/motivates directors to set pay for managers? (Coke, Disney, Citigroup, Fannie Mae) Relationships ­ impact on standards for CEO compensation Willingness to recruit a successor Press reaction ­ their own reputations level of engagement (or lack there of) Examples – – – Wm. Agee ­ Morrison­Knudsen Tony Reilly ­ Heinz Lee Iacocca ­ Ford/Chrysler & Retirement Copyright 2013 Copyright 2013 Corporate Governance: As a Legal Concept Corporation: – Property Concept ­ Shareholders Property Purpose: Increase Shareholder Value Vehicle: Directors as Agents ­ Duty of Loyalty to Shareholders Courts Support: Business Corporation – Organized and operates primarily for the profit of shareholders – Directors...
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This document was uploaded on 01/28/2014.

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