Which of the following are effective means of aligning management goals with shareholder interests?
I.Employee stock options
II.Threat of a takeover
III.Management bonuses tied to performance goals
IV.Threat of a proxy fight
A)I and III only
B)II and IV only
C)I, II, and III only
D)I, III, and IV only
E)I, II, III, and IV

Question

Quizplus · Accepted Answer

Employee stock options, management bonuses tied to performance goals, the threat of a takeover, and the threat of a proxy fight are all mechanisms that can align management goals with shareholder interests by incentivizing management to act in ways that increase shareholder value.

Which of the Following Are Effective Means of Aligning Management