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Agency theory

ZZahra7y ago
Calum, Heidi and Jonas are managers for Zip Co. They have been told that their salary will be based on company performance and that a bonus scheme will also be introduced. The bonus scheme will also be related to company performance. Which of the following best describes the approach to governance that Zip Co. Is using? A. Stewardship theory B. Agency Theory C. Stakeholders theory
kengarrettkengarrettTutor7y ago#1
It doesn't seem to me that the bonus scheme has much to do with governance. If forced to choose I would go for B as what's good formthe managers ismgood formthe company and its shareholders.
ZZahra7y ago#2
I feel like the question is not clear. And so we have to deduce what fits best
kengarrettkengarrettTutor7y ago#3
Agreed.
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