Which of the following represents the minimum horizon where the focus of managers on improving total returns to shareholders (TRS )to win performance bonuses will align their interests and the interests of their shareholders?
A)3-5 years.
B)6-9 years.
C)10-15 years.
D)16-20 years.

Question

Quizplus · Accepted Answer

The 10-15 year horizon is the minimum horizon where the focus of managers on improving total returns to shareholders (TRS) to win performance bonuses will align their interests and the interests of their shareholders. This is because it takes time for the full effects of managerial decisions to be realized, and a 10-15 year horizon provides sufficient time for managers to see the results of their actions and make adjustments as needed.

Which of the Following Represents the Minimum Horizon Where the Focus