Firms with at least one large shareholder ______ pay executives based on relative stock performance.
A) are less likely to
B) are more likely to
C) are equally likely to
D) never

Question

Quizplus · Accepted Answer

Large shareholders typically have a greater interest in the overall performance and long-term success of the firm, which may incentivize them to link executive pay to the stock performance. Therefore, firms with at least one large shareholder are more likely to pay executives based on relative stock performance.

Firms with at Least One Large Shareholder ______ Pay Executives