Managers who place the interest of the shareholders first, will tend to:
A) Be replaced on a routine basis.
B) Decline all offers to buy the firm.
C) Realize minimal value from the stock options they are granted.
D) Reward employees for unethical behavior if that behavior increases the firm's net income.
E) Be in greater demand and receive higher compensation.

Question

Quizplus · Accepted Answer

Managers who prioritize shareholder interests often align their decisions with enhancing shareholder value, which can lead to improved company performance. This alignment with shareholder interests can make such managers more valuable to firms and shareholders, potentially leading to higher demand for their services and, consequently, higher compensation.

Managers Who Place the Interest of the Shareholders First, Will