Research on Incentives of the Company to the Management

DOI

10.2991/978-94-6463-098-5_52How to use a DOI?

Keywords

Ownership; Management rights; Incentive

Abstract

The separation of ownership and management rights of the company requires the owner of the company to hire a manager with professional ability to manage the company. The managers of the company pursue the maximization of their own interests, while the owners of the company pursue the maximization of profits. Therefore, company owners need to link the managers of the company's profits in different ways. That is, the owners use different incentive methods to change the goal of the managers to pursue the maximization of their own interests in the maximization of the company's profits, so as to meet the goals of both the managers and shareholders. This study aims to improve the loyalty, enthusiasm, and profitability of managers by using different incentive methods, and analyzing the way companies motivate managers through qualitative analysis and review. In general, the company will not change the manager easily, because the change of the manager requires a vote of the board of directors. The company cannot change the manager without reason, and forcible dismissal would violate the articles of association. The replacement of the new manager will cause the company to enter a long-term adaptation period, and the future performance of the company is still unknown. Therefore, companies need to adopt different means to motivate managers. When managers use different incentive methods, the company's profit may change accordingly. When the company's profit grows the fastest, this incentive method is the best choice.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yizhe Wang
PY  - 2022
DA  - 2022/12/27
TI  - Research on Incentives of the Company to the Management
BT  - Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
PB  - Atlantis Press
SP  - 464
EP  - 470
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-098-5_52
DO  - 10.2991/978-94-6463-098-5_52
ID  - Wang2022
ER  -