Shareholders Rely on CEOs to Adopt Policies and Strategies That

question 91

Multiple Choice

Shareholders rely on CEOs to adopt policies and strategies that maximize the value of their shares.To motivate CEOs to maximize the value of their companies,boards of directors can consider all the following options except one.Which one is it?

• A) Boards can require that the CEOs become substantial owners of company stock.
• B) Salaries, bonuses, and stock options can be structures to provide rewards for superior performance.
• C) Salaries can be structured to provide penalties for poor performance.
• D) Dismissal for poor performance is not an option.

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Definitions:

Orbicularis Oris

A complex of muscles in the lips that encircles the mouth, enabling movements involved in speech and facial expressions.

Nasalis

A facial muscle responsible for the compression of the nasal cartilage.

Facial Nerve

A cranial nerve that controls the muscles of facial expression, taste sensations from the anterior two-thirds of the tongue, and the production of saliva and tears.

Hyoid Bone

A unique U-shaped bone located in the anterior neck, which supports the tongue and provides attachment points for muscles associated with swallowing.