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Which of the following help convince managers to work in the best interest of the stockholders? I. compensation based on the value of the stock II. stock option plans III. threat of a company takeover IV. threat of a proxy fight

User Rjsang
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Answer:

I. compensation based on the value of the stock

Step-by-step explanation:

The bonus and compensation that CEO's receive is calculated by the price of the stock. Exist an important debate on this matter because some people consider this performance measure an unfair distribution of the earnings of companies, however is perphaps the most reliable ratio to align the best effort of managers and market expectations.

User Dominik Matis
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