When executive compensation incentives are not aligned with creating shareholder value, you risk having executives whose goals are not aligned with investors. The consequences of such misalignment are behavior like what we have seen with Valeant Pharmaceuticals (VRX), whose stock is down 68% year-to-date, and whose internal controls may get a qualified opinion by their auditor. Valeant is not the only company with misaligned executive incentives. There are many others.
Forbes, APR 15, 2016 @ 02:57 PM
David Trainer, Contributor
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