From the daily archives:

Tuesday, December 24, 2013

Christmas for some – The case of high top executive pay

December 24, 2013

In recent years the pay checks for top executives have kept on increasing. What is the mechanism behind this? Economists talk about the agency problem, referring to the conflict of interest between a company’s management and the company’s stockholders. The manager, acting as the agent for the shareholders is supposed to make decisions that will […]

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