Verified Document

Incentive Conflicts And Contracts Term Paper

¶ … stock options and benefits and flexible benefits. It determines that stock options and benefits, tied directly to organizational performance, are good for the organization, however, they may have been a contributing factor to recent corporate scandals. And, the paper will discuss how my organization utilizes flexible benefits, and the rewards the organization has reaped, as such. Incentive Conflicts and Contracts

Stock options and bonuses tied to company performance are effective in motivating executives to work for the good of the organization. It allows these employees to "participate from an equity point-of-view" (Roberts, 1999). This tie with the employee financial incentive to organizational success is now not only a perk top-level management receives,...

As Tony Plath, a professor of banking and corporate finance at the University of North Carolina at Charlotte noted, "It binds the interest of the employee to the interest of the shareholders directly. The people who are at the lower level are the ones who will execute the company's plans, and having a direct stake in the outcome will encourage a better execution of the strategy" (as cited in Roberts, 1999).
I do think that stock options and bonuses tied to organizational performance were a factor in some of the recent corporate accounting and related scandals. Although they may not be…

Sources used in this document:
References

Flexible benefits -- case study: Figuring out how successful flex is. (2005, Mar. 2). Employee Benefits. Retrieved March 10, 2005, from InfoTrac OneFile database.

Roberts, T. (1999, Mar. 19). Stock options motivate, reward more employees. The Business Journal Serving Charlotte and the Metropolitan Area, 13(51). Retrieved March 10, 2005, from InfoTrac OneFile database.
Cite this Document:
Copy Bibliography Citation

Related Documents

Contract Theory: Contract Theory: Are
Words: 8091 Length: 25 Document Type: Term Paper

Because promises are usually kept, it is usually reasonable to rely on a promise, and promises are usually relied upon. (p. 1) Despite its centrality to the human condition, the social practice of promising remains primitive and incomplete in comparison to other disciplines such as mathematics and linguistics (Mather, 1999). When it comes to the promises contained in contracts of any type, there are some general guidelines but these do

Contract Dispute and Renegotiation Between
Words: 1271 Length: 4 Document Type: Thesis

A lawsuit would create bad publicity for the bank during a period when it needs to create a positive image for itself in the media. Retaining a strong relationship with an IT business partner is beneficial for CS, given the ever-changing nature of technology. The changing demands of the project is one reason the company has had such as stressful relationship with SS, and presumably the new system will require

Conflict, Its Nature and Sources
Words: 2694 Length: 7 Document Type: Case Study

Conflict Resolution (c) Based on what you learned in T205A concept file 02, and T551 Linear Programming: what is meant by conflict, its nature and sources? Conflict in psychological development theory offered by Erik Erikson is a dichotomy. It can act both as a means of moving ahead towards growth and development or on the other hand lead to a dead stop. A situation that one finds oneself in causes internal emotions that

Government Contracting Process the Federal
Words: 2271 Length: 8 Document Type: Thesis

(Vancketta, 1999) The 'Changes' clause enables the Government "to make unilateral changes to the contract during performance, so long as those changes fall within the contract's scope." The Standard 'Changes' clause utilized in fixes price supply contracts allows the CO to make changes in writing to: 1) the drawings, designs, or specifications when the item is being specifically manufactured for the government; 2) the method of shipment or packing; or 3) the place

Imperfect Information and Legal Contract
Words: 1509 Length: 5 Document Type: Essay

Running head: CONTRACTING WITH IMPERFECT INFORMATION5CONTRACTING WITH IMPERFECT INFORMATIONContracting with Imperfect InformationUsually, contracts that are well designed can resolve issues such as incentive problems at a low cost. However, contracts often fail in accomplishing this objective. Also, contracts in practice tend to be costly for negotiation, writing, administration, and enforcement. One of the factors that significantly limits the ability of a contract to resolve any incentive conflict is costly information.

Incentives Increase the Quality of
Words: 11168 Length: 41 Document Type: Term Paper

In this way, any concerns that could come up and be problematic will be avoided and the information contained in the study can be accepted as being reliable, valid, and unique. As has been mentioned, limitations are too often overlooked in studies, and it is often impossible to find all of the limitations that are contained in a study and spell them out for all to see. However, that does

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now