Which One of the Following Is Least Apt to Encourage

Multiple Choice

Which one of the following is least apt to encourage managers to act in the best interest of shareholders?

A) Shareholder election of the board of directors,who in turn select managers
B) Threat of a takeover by another firm
C) Linking manager compensation to share value
D) Compensating managers with fixed salaries
E) Granting stock options to key managers