文档介绍：pensation,andPerformanceMeasurementSlidesbyMatthewWillMcGraw-Hill/IrwinCopyright©2011bytheMcGraw-panies,:ountingMeasuresofPerformanceThePrincipalAgentProblemShareholders=OwnersManagers=EmployeesQuestion:Whohasthepower?Answer:ManagersIncentiveBypassProblemsToomanyprojectsfortopmanagementtoanalyzeDetailsarebeyondtheviewofexecsManydecisionsarenotinthecapitalbudgetSmalldecisionsaddupExecsarealsosubjecttohumanerrorThecorrectdecision…IncentivesReducedeffortPerksEmpirebuildingEntrenchinginvestmentAvoidingriskAgencyProblemsinCapitalBudgetingIncentiveIssuesMonitoring---(2008)pensation: LevelsandMixVaryConsiderablySource:TowersPerrin’$0$2,000,000$4,000,000$6,000,000$8,000,000$10,000,herlandsSpainFranceUnited KingdomCanadaUnited .$pensation(2008)pensation: :e&&eSales 550COGS 275Selling,G&A 75 ******@35% e $. 80Property,plantandequipment 1170lessdepr. Invest.. 810Otherassets 110TotalAssets $1,000QuayleCitySubductionPlant($mil)