Which one of the following forms of compensation is most apt to align the interests of managers and shareholders?

Question

Quizplus · Accepted Answer

A salary that is paid partly in the form of the company's shares aligns the interests of managers and shareholders as it links the managers' compensation with the company's stock price. This incentivizes managers to make decisions that will positively impact the company's performance and thereby increase the stock price, benefiting both shareholders and themselves.

Which One of the Following Forms of Compensation Is Most