Here's the Real Reason Take-Two Interactive Continues to Perform

Here's the Real Reason Take-Two Interactive Continues to Perform

One way to better understand a company's strategy is to look at management's incentives embedded in the company's compensation agreement with its CEO. Typically, companies pay a base salary to the CEO but give bonuses and stock awards on top of that for accomplishing certain financial targets, and some companies even reward CEOs if the stock delivers a certain minimum return over a specific period.

Depending on how leadership is incentivized can have dramatic effects on investors' return over time. We're going to take a look at the incentives in Take-Two Interactive's (NASDAQ: TTWO) compensation agreement with CEO Strauss Zelnick to better understand the video game maker's strategy, which could give us clues about Take-Two's future plans.

IMAGE SOURCE: GETTY IMAGES

Continue reading

Source: Fool.com