Managers who own more than 1 percent of their firm's stock may be less likely to be forced out of their jobs,even when the firm is performing poorly.

Question

Quizplus · Accepted Answer

This is because managers who own a significant amount of the firm's stock have a personal financial stake in the performance of the company and are more likely to work towards improving it. Additionally, they may have more leverage in negotiating their position with the board of directors.

Managers Who Own More Than 1 Percent of Their Firm's