ECO550 Strayer Wk 9 Principle Agent Problem & Incentive Management Discussion

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Week 9 Discussion

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The Principle-Agent Problem, To Manage Incentive You Have to Understand Motivation.

What Is the Principle-Agent Problem? Here is some help. https://www.youtube.com/watch?v=cpu0dw9VY2E

Here is our case study this week. https://www.nbcnews.com/business/business-news/another-wells-fargo-ceo-steps-down-about-damn-time-longtime-n988671

This week we look at the principle-agent problem and what when wrong at Wells Fargo. After another CEO Tim Sloan the CEO who was suppose to restore the bank's reputation stepped down March 28, 2019 there are still huge questions. https://www.americanbanker.com/news/fed-wont-lift-wells-fargo-cap-until-deficiencies-are-fixed-powell

What about the incentive system resulted in massive creation of fake accounts by the retail operation and why did it only get worse from there? As you dig into this remember Froeb's rule from Chapter 1"Avoid the temptation to think about the problem from the employee's point of view...{and ask} how does the organization give employees enough information to make good decisions and the incentives to do so?" page 8

departments increase their applicant pool by dropping this requirement?

PLEASE DO NOT RELY ON WIKIPEDIA, INVESTOPEDIA OR ANY OTHER PEDIA AS A REFERENCE AT ANYTIME IN THIS COURSE.

FOR THE MAXIMUM POSSIBLE CREDIT OF 20 POINTS, YOU MUST COMPLETE ONE POST AND ONE FOLLOW-UP/REPLY. MAKE SURE BOTH THE POST AND REPLY FOCUS ON THE QUESTIONS ASKED.

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Week 9 Discussion COLLAP SE f05e602d-b93b-4 false The Principle-Agent Problem, To Manage Incentive You Have to Understand Motivation. What Is the Principle-Agent Problem? Here is some help. https://www.youtube.com/watch?v=cpu0dw9VY2E Here is our case study this week. https://www.nbcnews.com/business/business-news/another-wells-fargoceo-steps-down-about-damn-time-longtime-n988671 This week we look at the principle-agent problem and what when wrong at Wells Fargo. After another CEO Tim Sloan the CEO who was suppose to restore the bank's reputation stepped down March 28, 2019 there are still huge questions. https://www.americanbanker.com/news/fedwont-lift-wells-fargo-cap-until-deficiencies-are-fixed-powell What about the incentive system resulted in massive creation of fake accounts by the retail operation and why did it only get worse from there? As you dig into this remember Froe b's rule from Chapter 1"Avoid the temptation to think about the problem from the employee's point of view...{and ask} how does the organization give employees enough information to make good decisions and the incentives to do so?" page 8 departments increase their applicant pool by dropping this requirement? PLEASE DO NOT RELY ON WIKIPEDIA, INVESTOPEDIA OR ANY OTHER PEDIA AS A REFERENCE AT ANYTIME IN THIS COURSE. FOR THE MAXIMUM POSSIBLE CREDIT OF 20 POINTS, YOU MUST COMPLETE ONE POST AND ONE FOLLOW-UP/REPLY. MAKE SURE BOTH THE POST AND REPLY FOCUS ON THE QUESTIONS ASKED. ...
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TutorAR
School: UC Berkeley

Hi, find attached the completed work for your review.Let me know if I should edit or change anything.Looking forward to working with you in future.Thank you.
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Outline
I.

The principal agent problem is basically a conflict between a principal and an agent
resulting from information asymmetry between the principal and the agent or rather
failure by the principal to provide enough incentives for the agent; that would allow
him/her act in the best interest of the principal.

II.

The major reason why Wells Fargo & Co. has been through these massive challenges is
due to their incentive system that did not favor employees.

III.

This ruined their intent in all their actions on behalf of t...

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