Which of the following is most likely to motivate executives to maximize shareholder wealth?
A) Tying bonuses to cost reductions and meeting budget goals
B) Offering them relatively high salaries
C) Tying annual bonuses to increases in annual profits
D) Compensating them with stock options that can only be exercised after five years
Answer: D
You might also like to view...
Which of the following bonds is least subject to the regulations of any particular country?
A) domestic bonds B) foreign bonds C) domestic debentures D) dragon bonds
An effective OD practitioner is aware of technical, political, and social systems in organizations and tries to _____
a. bring strategic and significant changes to all three systems b. encourage the development of small incremental changes in the three systems c. bring stability to the three systems d. align the three systems with one another e. none of the above