If unionization leads to lower shareholder returns,other things being equal,top managers could be expected to try to _____ in their firms,particularly if a substantial proportion of their compensation is in the form of stock options.
A) increase worker motivation
B) decrease high absenteeism
C) reduce unionization
D) introduce stock split option

Question

Quizplus · Accepted Answer

If unionization leads to lower shareholder returns, top managers who receive a substantial proportion of their compensation in the form of stock options would work to reduce unionization in their firms to increase shareholder returns. Therefore, the best choice among the options given is to reduce unionization (choice C). The other options of increasing worker motivation (A), decreasing high absenteeism (B), and introducing stock split option (D) do not have a direct impact on shareholder returns in the same way as reducing unionization.

If Unionization Leads to Lower Shareholder Returns,other Things Being Equal,top