Adding stock options and bonuses for performance to the compensation of a manager is intended to closer align the interest of the manager with:

Question

Quizplus · Accepted Answer

Stock options and bonuses for performance are often tied to the company's stock price or financial performance, which in turn benefits the stockholders. Therefore, the option and bonus encourage the manager to make decisions that will translate to better performance and higher stock prices, which in turn benefit the stockholders.

Adding Stock Options and Bonuses for Performance to the Compensation