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Topic: Business
Number of pages / Number of words: 5 / 1130
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In attempting to achieve his overall goal of aligning the interest of management and shareholders Mr. Duckworth proposed a new Economic Value Added (EVA) Incentive System. Under this new incentive system, management?s pay was directly linked to creating shareholder wealth. This plan would give managers superior information - and superior motivation - to make decisions that will create the greatest shareholder wealth (Stewart, 2005)...


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This plan would give managers superior information - and superior motivation - to make decisions that will create the greatest shareholder wealth (Stewart, 2005). Another area that this new incentive plan would address is the complicated and complex calculations associated with determining the amount of incentive earned...


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