Which of the following can help align the behaviour of managers with the goals of shareholders?
A) management compensation
B) managerial labour markets
C) an independent board of directors
D) all of the above

Question

Quizplus · Accepted Answer

All three options can help align the behaviour of managers with the goals of shareholders. Management compensation can incentivize managers to work towards increasing shareholder value. Managerial labour markets ensure that if a manager is not performing, they can be replaced with a more effective manager who will work towards the goals of shareholders. An independent board of directors can provide oversight and ensure that the interests of shareholders are being taken into account in decision making.

Which of the Following Can Help Align the Behaviour of Managers