Among solutions to the agency problem in publicly held corporations are all of the followingEXCEPT

Question

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Bonuses based on short-term results can actually exacerbate the agency problem by encouraging management to focus on short-term gains at the expense of long-term value creation for shareholders. The other options (stock options, performance shares, and cash bonuses tied to goal achievement) can align the interests of management with those of shareholders by linking executive compensation to the performance of the company over a longer period of time.

Among Solutions to the Agency Problem in Publicly Held Corporations