Which one of the following is most apt to align management's priorities with shareholders' interests?
A)Increasing employee retirement benefits
B)Compensating managers with shares of stock that must be held for three years before the shares can be sold
C)Allowing a manager to decorate his or her own office once he or she has been in that office for a period of three years or more
D)Increasing the number of paid holidays that long-term employees are entitled to receive
E)Allowing employees to retire early with full retirement benefits

Question

Quizplus · Accepted Answer

Compensating managers with shares of stock that must be held for a significant period of time aligns their interests with the long-term interests of shareholders. This encourages them to make decisions that enhance the company's long-term value, rather than focusing on short-term profits. The other options do not directly align management's priorities with shareholders' interests.

Which One of the Following Is Most Apt to Align