Which of the following illustrates a situation that would encourage a manager to work in the interests of a company's shareholders?

Question

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The situation where a manager's compensation is tied to maximizing the company's share price directly aligns the manager's interests with those of the shareholders. By working towards increasing the share price, the manager is also increasing the value of the shareholders' investments, thus fulfilling their interests. A, B, and D do not necessarily encourage a manager to work in the interests of the company's shareholders. A and B may encourage a manager to prioritize short-term profits or cost-cutting over long-term growth, which may not align with shareholders' interests. D may improve the manager's personal work environment, but it is not necessarily tied to the company's overall performance or shareholder interests.

Which of the Following Illustrates a Situation That Would Encourage