Imagine that you are the chairman of the board of a large corporation. Which of the following mechanisms do you think the board should choose to adopt to motivate top-level managers to act in the best interests of shareholders?a.Eliminate a requirement that members of the board of directors have a substantial investment in the firm's stock.b.Decrease the use of restrictive covenants in bond agreements.c.Take actions that reduce the possibility of a hostile takeover.d.Elect a board of directors that allows managers greater freedom of action.e.Increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries.

Then try StudyFetch, the AI-powered platform that can answer your questions and teach you more about it!