Incentive alignment
Fundamental analysisWhether management is rewarded for the same outcomes shareholders want.
In plain terms
Whatever the variable pay is linked to is what will get maximised.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Whether management is rewarded for the same outcomes shareholders want.
Whatever the variable pay is linked to is what will get maximised.