Multiple Choice
Which of the following is most likely to motivate executives to maximize shareholder wealth?
A) Tying bonuses to cost reductions and meeting budget goals.
B) Offering them relatively high salaries.
C) Tying annual bonuses to increases in annual profits.
D) Compensating them with stock options that can only be exercised after five years.
Correct Answer:

Verified
Correct Answer:
Verified
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