Final answer:
Having a majority of executives on the board of directors is unlikely to reduce agency problems.
Step-by-step explanation:
Agency problems refer to conflicts of interest between shareholders (the owners of a company) and managers (those who run the company on behalf of the shareholders). Reducing agency problems is important for the smooth functioning of a company. Out of the options provided, having a majority of executives on the board of directors (option B) is unlikely to reduce agency problems. This is because when a majority of executives are on the board of directors, they have a stronger influence on decision-making and may prioritize their own interests over those of the shareholders. This can result in a lack of oversight and potential conflicts of interest. On the other hand, options A, C, D, and E (compensation packages that align interests, providing managers with stock options, corporate governance regulations, and effective internal controls and procedures) are all measures that can help align the interests of shareholders and managers and reduce agency problems.