29.1: Stakeholder Management Flashcards
What is a staggered board of directors?
Board-related election process whereby directors are typically divided into multiple classes that are elected separately in consecutive years — that is, one class every year.
What is the principal–agent relationship in corporations?
In corporations it is the shareholder-board of directors relationship.
What are the Agency costs?
Costs associated with conflicts of interest between principals and agents when a company is managed by non-owners.
What does “Perquisite consumption” refers to?
Items that executives may legally authorize for themselves that have a cost to shareholders, such as subsidized dining, a corporate jet fleet, and chauffeured limousines.
Corporate ownership structures are generally classified as …
Dispersed, concentrated, or a hybrid of the two.
