The ways that are out there to shareholders to assist make sure that managers are motivated to act this manner are:
b. Make sure that underperforming managers are discharged.
c. Write contracts that make sure that the interests of the managers and shareholders are closely aligned.
d. Mount hostile takeovers.
e. Make sure that workers are paid with company stock and/or stock choices.
What is mean by shareholders?
- A person or legal organization that is officially recognized by a corporation as the owner of shares of the share capital of a public or private corporation is referred to as a shareholder.
- A corporation's members may be referred to as shareholders.
- Any company's shareholders have a duty to see to it that it is effectively managed and operated.
- In order to accomplish this, they keep an eye on the business's performance and voice any concerns or support for the management's decisions.
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