Which one of the following is most apt to align management's priorities with shareholders' interests?
A)Holding corporate and shareholder meetings at high-end resort-type locations preferred by managers
B)Compensating managers with shares of stock that must be held for a minimum of three years
C)Paying a special management bonus on every fifth year of employment
D)Increasing the number of paid holidays that long-term employees are entitled to receive
E)Allowing employees to retire early with full retirement benefits

Question

Quizplus · Accepted Answer

Compensating managers with shares of stock that must be held for a minimum of three years aligns management's interests with shareholders' interests by incentivizing managers to focus on the long-term success and value of the company, as their personal financial gain is tied to the company's stock performance.

Which One of the Following Is Most Apt to Align