materials

1. Discussion: aligning stockholder and management interests/tvm/markets
Part 1: Stockholders and Management InterestsStockholders and managers want the same
thing, don’t they? Theoretically, yes, but in reality, it does not always work that way. Too
often, managers’ personal goals compete with shareholder wealth maximization.
Sometimes, managers pay themselves excessive salaries or bonuses that are at odds with
the idea of shareholder wealth maximization. How many times have you seen in the news
examples of CEO excesses or outlandish spending on events or things that definitely do not
help the overall goal of stockholder wealth maximization? To prepare for this Discussion,
think about a time in your professional experience when a decision was made that seemed
to benefit a specific manager or small group of managers and not the overall corporation. If
you do not have professional experience directly related to this topic, research a situation in
the news where this theme is demonstrated. Consider the outcomes of such an imbalance
between manager and stockholder interests and research on how to avoid such a
situation.Describe the situation from either your professional experience or your
research.Explain two or more motivational tools that can aid in aligning stockholder and
management interests.Explain how your selected tools are effective in resolving potential
conflicts among managers and stockholders.Support your discussion with appropriate
academically reviewed articles. Use APA format throughout.Part 2: Application of
Concepts/Time Value of MoneyReview the video links below. Based on the materials
presented in these videos, discuss how you will use the time value of money concepts in
managerial decision making. Be specific and give examples based on your experience or
research.Time Value of Money http://www.teachmefinance.com/bondvaluation.html