۱٫ Introduction

۲٫ Literature Review

۳٫ Methodology

۴٫ Managerial Opportunism

۵٫ Opportunism limit

References

The sustainable development of the corporation in unstable economic conditions is largely determined not only by the current situation of the market, but also by competent actions of management personnel. In the negative economic situation in the country and the world, the interaction between the subjects of the corporation at different levels is characterized by a high degree of managerial opportunism. This article deals with the structure of the top managers’ remuneration in Russian corporations. There is a rating of the dependence of the level of wages due to the results of manager’s activity. The average wage dispersion within manager and staff worker groups of the corporations is estimated. The presented results show that the existence of problems of managerial opportunism are common for all companies in the world and require the development of effective mechanisms for its limitation.

Introduction

Managerial opportunism negatively influences the efficiency and the development of corporations. Therefore, a study of how managerial opportunism manifests and proposals for its restriction is necessary for the most effective management of the corporation. The removal of the owner from corporate management led to the problem of asymmetric distribution of information in favor of the manager. Having delegated their powers to the manager, the shareholders were not always able to observe what efforts the manager makes to fulfill his duties. Further, the shareholders are unlikely to receive complete and reliable information about the current state of the affairs of the firm. This situation leads to the premises for managerial opportunism. The aim of such behavior is to directly benefit at the expense of the shareholders.