This is quite an easy discussion to have for larger


When we think of maximizing shareholder wealth, we often think about larger companies. However, the vast majority of the public stocks that are listed are not larger companies. Many of them are smaller, but they still have a fiduciary duty to their shareholders. With this in mind, the smaller companies still want to find ways to make their stock prices rise and grow the business. They are often constrained by smaller budgets and lower profit margins. Earlier we saw a question that discussed CEO compensation based on how the firm performs or perhaps even based on a fixed dollar amount. I am interested in hearing, especially since we are at the beginning of the class, how you feel about this for the smaller companies. This is quite an easy discussion to have for larger companies, but what about the smaller ones? I would love to hear your thoughts on this.

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