From an agency theory perspective, the goal of owners is to encourage the agents to act in the best interests of the owners. This means:
A)more emphasis on stock performance and less emphasis on outcome-oriented contracts.
B)less emphasis on noncontingent pay and more emphasis on outcome-oriented contracts.
C)more emphasis short term compensation and less emphasis on long term compensation.
D)more emphasis on base pay and less emphasis on stock performance.
E)less emphasis on short term compensation and more emphasis on base pay.

Question

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From an agency theory perspective, the goal of owners (shareholders)is to encourage the agents (managers and executives)to act in the best interests of the owners. This means less emphasis on noncontingent pay and more emphasis on outcome-oriented contracts makes some portion of executive pay contingent on the organization's profitability or stock performance.

From an Agency Theory Perspective, the Goal of Owners Is