General Studies · Corporate Governance
Managerial reward schemes should ensure that executives make decisions consistent with the objectives of shareholders. Which of the following is NOT a desirable characteristic of a carefully designed remuneration package?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Encouraging managers to adopt similar risk attitudes as shareholders
- 2Maximizing the possibility of financial metrics manipulation by managers✓
- 3Matching managers' time horizons to shareholders' long-term horizons
- 4Linking of rewards directly to changes in shareholder wealth
Correct answer
Maximizing the possibility of financial metrics manipulation by managers
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