C Schipper 1989 P 91 States That Not Including Earnings In Managerial Compensation Contracts Exclude S A Potentia 1 (31.14 KiB) Viewed 13 times
c) Schipper (1989, p. 91) states that not including earnings in managerial compensation contracts "exclude[s] a potentially very informative signal about
managerial productivity, and [..] ignores the possibility that earnings management has the essentially beneficial role of providing a means for managers to reveal their private information" [Schipper, K. (1989). Commentary on earnings management, Accounting Horizons 3(4): 91-102].
ii) Propose a mix of accounting measures that could be used in the compensation contract of the CEO and that might alleviate the concerns of the shareholders. You should identify and discuss at least three different accounting measures.
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