Probably the least effective means of aligning management goals with shareholder interests is:
Options:
| A) basing all management bonuses on performance goals. B) the potential for a proxy fight by an unhappy segment of shareholders. C) automatically increasing management salaries on an annual basis. D) the threat of a takeover of the firm. E) holding management salaries steady while increasing stock option grants. |
The Correct Answer Is:
- C) automatically increasing management salaries on an annual basis.