Book contents
- Corporate Governance and Responsible Investment in Private Equity
- International Corporate Law and Financial Market Regulation
- Corporate Governance and Responsible Investment in Private Equity
- Copyright page
- Dedication
- Contents
- Acknowledgements
- Introduction
- Part I How Should Private Equity Governance Systems Look?
- Part II What Actually Happens?
- 3 Agency Cost Mitigation
- 4 Improving Decision-Making and Protecting Wider Interests
- Part III Corporate Governance Regulation in the United Kingdom and Private Equity’s Response
- Part IV How Governance Can Affect Corporate Performance
- Bibliography
- Index
3 - Agency Cost Mitigation
from Part II - What Actually Happens?
Published online by Cambridge University Press: 16 November 2020
Book contents
- Corporate Governance and Responsible Investment in Private Equity
- International Corporate Law and Financial Market Regulation
- Corporate Governance and Responsible Investment in Private Equity
- Copyright page
- Dedication
- Contents
- Acknowledgements
- Introduction
- Part I How Should Private Equity Governance Systems Look?
- Part II What Actually Happens?
- 3 Agency Cost Mitigation
- 4 Improving Decision-Making and Protecting Wider Interests
- Part III Corporate Governance Regulation in the United Kingdom and Private Equity’s Response
- Part IV How Governance Can Affect Corporate Performance
- Bibliography
- Index
Summary
This chapter explains the main tools used by private equity firms to mitigate the “agency costs” of delegation: contractual alignment of economic interests (especially through sophisticated pay/performance sensitivity), and closer oversight through board and reporting structures.
- Type
- Chapter
- Information
- Publisher: Cambridge University PressPrint publication year: 2021