Which of the following mechanisms are designed to induce managers to maximize stock, and thus shareholder, value?

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Linking CEO and top management team pay to share performance is a mechanism designed to induce managers to maximize stock and shareholder value. This is because if the CEO and top management team are incentivized to increase share performance, they will make decisions in the best interest of the company and ultimately the shareholders. The linking of CEO and top management team pay to innovation may also benefit shareholder value, but it is not specifically designed to maximize stock value. The linking of CEO and top management team pay without consideration of share performance may not necessarily motivate them to focus on maximizing shareholder value.

Which of the Following Mechanisms Are Designed to Induce Managers