31 Jan · Analyze the benefits of

Discussion 1 Aligning Stockholder and Management Interests

Stockholders and managers want the same thing, don’t they? Theoretically, yes, but in reality, it does not always work that way. Too often, managers’ personal goals compete with shareholder wealth maximization. Sometimes, managers pay themselves excessive salaries or bonuses that are at odds with the idea of shareholder wealth maximization. How many times have you seen in the news examples of CEO excesses or outlandish spending on events or things that definitely do not help the overall goal of stockholder wealth maximization?

To prepare for this Discussion, think about a time in your professional experience when a decision was made that seemed to benefit a specific manager or small group of managers and not the overall corporation. If you do not have professional experience directly related to this topic, research a situation in the news where this theme is demonstrated. Consider the outcomes of such an imbalance between manager and stockholder interests, and research how to avoid such a situation.

Week 1 Discussion 2

Discussion 2– Shared Practice: A Culture That Supports Financial Acumen

Note: This Discussion continues into Week 2.

Keeping abreast of financial measures and metrics employed by a company allows employees to better understand its health and position at any time.

To prepare for this Discussion: Shared Practice, take a moment to view the video “Creating Financial Acumen Within Your Company.”

Note: This Discussion has slightly different due dates than what is typical for this program. Be mindful of this as you post and respond in the Discussion. Your post is due on Day 7, and your response is due on Day 3 of Week 2.

· Analyze the benefits of establishing solid financial acumen in a company. Tell your colleagues about your personal experiences in one or two situations in which financial acumen was either not supported as an organization hallmark or was actually built into the company’s culture.

· Analyze how creating a culture of financial acumen in your organization might contribute to the overall success or failure of the organization.

Read a selection of the posts submitted by your colleagues. You are required to respond by Day 3 of Week 2 to two or more of your colleagues in one or more of the following ways:

· Provide insights or contrasting observations regarding financial acumen that you gained from reading their posts.

· Offer other examples, based on your experience or research, of when financial acumen was effectively used or when decisions were made without it, and explain the results.

· Describe trends about financial acumen you observe from the posts of your colleagues and why those trends are important.