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An Effective Way to Align Bank Managers' Interests with Shareholders

question 10

True/False

An effective way to align bank managers' interests with shareholders' goal of higher returns is to compensate the managers with fixed salaries without a bonus.


Definitions:

Legislator

An elected official who is involved in the process of making or enacting laws.

Persuade

The action of convincing someone to do or believe something through reasoning or the use of temptation.

Facts

Information that is verifiable, objectively true, and supported by solid evidence.

Johnson Amendment

A provision in U.S. tax code prohibiting 501(c)(3) nonprofit organizations from endorsing or opposing political candidates.

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