The different demands in a company

When doing any business, there is a complex circle of demands: the company's shareholders want their investment returns maximized, the managers want to maximize their salaries and the clients want to minimize their costs. In some situations, these demands could be met at the same time; however, there are some situations that these demands could not be all satisfied. When this happens, the managers and the clients are the two who are the most likely to achieve their goals, as they directly participate in the business. Due to the imperfect information, the interest of shareholders is likely to be left out. The shareholders cannot be fully aware of the accumulation of micro risks. This is especially crucial in the banking sector. Therefore, it is important to balance different parties' interests to ensure no one crosses the line.