2. Alignment of managers goals with the shareholders goals
This is a special case arising from the first point above. See the argument for the first point is often that "well the managers should do it, they're paid to do so, and they're paid to make the share price go up etc etc". Well.... No. This is another "right thing to do" that is a bitch to execute.
The commonly accepted way to align goals of managers with shareholders is to give them a large stock grant. Do you think this aligns the interests of managers and shareholders? Nah. All this does is makes them want more stock.
Look, none of these bitches will get fired if the stock price takes a dive. They will just blame it on the economy or the misguided bombers or the hurricane in some hapless coastal town. So, while they stand to benefit if the stock price goes up (or stays level), they stand to really benefit if they get more stock.
The way I look at it, most top managers are already fairly well off, cash wise. And the cash component of their salaries is still nothing to sneer at. So if you give them two options (a). Work hard, deliver bigger market share or higher margins and (b). Convince your boss you're a star so you get more stock, which one do you think they will choose?
Most of these Management Bullshit Artists are good are presenting forcefully their cases - however strong or weak the facts of the matter may be. So like their more evidently bastardish weasel brothers the lawyers - they cleverly plead their way into the top bracket. See the section above on pay for performance?
3. You're just like them
Every individual is motivated by self preservation first and self actualization last. And in the middle are so many factors that mess around with his brain - emotions, perceptions, marketing, etc. You can tell me that you're not one of them, but don't tell yourself that.
All else being equal, maybe some people would do good for others. But if that action starts influencing YOUR payout.... that's when things get messy.
So whats the point of this seemingly interminable blog post?
1). People are all looking out for themselves. You are too.
2). If you want them to do things that are good for you, you have to fool them into thinking that those things are good for them too.
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