Why might managers interest differ from those of shareholders?

Managers may prioritize their own job security, compensation, and personal career advancement over maximizing shareholder value, leading to potential conflicts of interest. They might pursue projects that enhance their prestige or short-term performance metrics instead of focusing on long-term profitability. Additionally, managers may prefer to retain earnings for company growth rather than distributing them as dividends, which can further diverge their interests from those of shareholders seeking immediate financial returns.