Information asymmetry may never be more pronounced than in the imbalance between managers and board members. Simply put, management knows more than the board. To level the playing field, the board can implement performance-based incentive systems. But these authors question, to what extent should boards integrate financial and non-financial measures of performance in corporate incentive plans?
Content: Article | Authors: Eduardo Schiehll, Paul André | Source: Ivey Business Journal | Subject: Corporate Governance