Be careful what you ask for

Incentive compensation results in different behavior.  That’s good news and bad news.

“Mylan Tied Pay to Tough Targets,” The Wall Street Journal, September 2, 2016 B1.  Bonus plan at EpiPen manufacturer may have led to pricing decisions that are now the subject of intense public scrutiny.  Huge bonuses.

But don’t officers of a company have a duty to maximize the profits for the shareholders?  Absent some other legal prohibition?  Maybe the pricing isn’t “nice,” but is it prohibited by company culture or just the culture outside the company?

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Filed under Board, Culture, Culture, Directors, Duty, Employees, Governance, Investor relations

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