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C1: January 4, 2017

Learning Objectives:

  • Understand the need for performance evaluation systems
  • Understand the complexities of creating incentive systems
  • Develop and explore meaningful applications of key terms: metric and agency

Class Preparation:

  1. Read: “Where’s the stick?” (Economist, October 9, 2003)   Read Article
    • Do you need a “stick and a carrot”?
  2. Read:  “CP Shares, CEO Pay take separate track” (Globe and Mail, June 23. 2016) Article
    • Should C-Suite pay be linked to share price?
  3. Read:  “Titan tire problem”:   http://www.tirereview.com/titan-x2019-s-giant-tires-falling-flat-in-canada/
  4. Read: “BMO misses three of four targets, but raises CEO’s pay” (Globe and Mail, March 19, 2015) Article
    • Is this protecting shareholders from CEOs taking excessive risks?
  5. Research online & Define: Metric
  6. Research online & Define: Agency Theory