A common suggestion to align the goals of managers with those of the stockholders is to pursue
A)stock options.
B)liberal vacation leave.
C)lower salaries.
D)None of the above.

Question

Quizplus · Accepted Answer

Pursuing stock options is a common suggestion to align the goals of managers with those of the stockholders as it ties the wealth of the managers to the financial performance of the company, making them more likely to make decisions that benefit the company's stock price and, therefore, the stockholders. Liberal vacation leave and lower salaries may not necessarily align the goals of managers with those of stockholders.

A Common Suggestion to Align the Goals of Managers with Those