BU527- Midterm Exam Guide - Comprehensive Notes for the exam ( 15 pages long!)
Document Summary
Recommendations: many of the severance payments are being made to individuals who are already wealthy. It is important the company distributes the packages in a fair manner to continue to motivate workers to meet shareholder interests/goals: there should be more input from other employees to avoid independence risks associated with determining severance packages. It is important for the company to analyze their most important employees. In this case they just took the executives but there should be a focus on individuals who are directly contributing to the performance of the company to steadily keep them motivated during the transition stage. Since there is going to be an acquisition the shareholder goals potentially have changed. It is important to align shareholder goals with compensation to determine what shareholders are interested in before acquisition: the company should implement a severance package that incorporates the performance of the company.
