The interests of CEOs and business managers can still be considered aligned with shareholders even if on the downside CEOs and managers do not suffer along with shareholders.

Question

Quizplus · Accepted Answer

The interests of CEOs and business managers are typically considered aligned with shareholders when they share both the upside and downside risks, ensuring that they are motivated to act in the best interest of the shareholders. If they do not suffer on the downside, their interests may not be fully aligned.

The Interests of CEOs and Business Managers Can Still Be