________ is one of the solution to the agency problem in publicly-held corporations.
A) Stock options
B) Stock split
C) Demotion of employee designation
D) Distribution of dividends

Question

Quizplus · Accepted Answer

Stock options align the interests of the managers with those of the shareholders, as managers are more likely to act in the best interest of the shareholders if their compensation is directly tied to the company's stock performance.

________ Is One of the Solution to the Agency Problem