The Text Provides an Example of Stakeholder Power in the Investment

Multiple Choice

The text provides an example of stakeholder power in the investment banking industry.In 2007,the net income of the top five U.S.investment banks was roughly $10 billion.This sounds pretty good until you find out that in this same year the salary and bonuses paid to their employees was FOUR times that amount ($40B) .This is an example of what?

A) Strong internal stakeholders capturing the value that would otherwise go to others (such as stockholders) .
B) Strong external stakeholders having an undue influence on managerial decisions inside the firm.
C) Weak internal stakeholders not getting inducements commensurate with their contributions to the firm.
D) In the end, all stakeholder groups are rewarded well if the firm is successful.