Question

Various executive compensation plans have been employed to motivate managers to make decisions that maximize shareholder wealth. These include: a. cash bonuses based on length of service with the firm b. bonuses for resisting hostile takeovers c. requiring officers to own stock in the company d. large corporate staffs e. a, b, and c only

Answer 1

e

Step-by-step explanation:

If mangers are compensated based on their length of service, it would encourage mangers to stay longer for with the firm. This would reduce the rate of turnover of firms.

If mangers are compensated for resisting hostile takeovers, it would align the interest of the firm with their firm instead of with the interest of that of the firm planning the hostile takeover

If mangers own stock of the company, there would be incentive to take actions to increase the value of their stock because if the value of the stock increases, the wealth of managers also increases