When Are the Interests of Stockholders and Senior Managers Likely

question 31

Multiple Choice

When are the interests of stockholders and senior managers likely to be most closely aligned?

• A) When the board of directors is dominated by insiders
• B) When managers receive most of their compensation in the form of a regular salary
• C) When stockholders are weak
• D) When managers receive most of their compensation in the form of stock options
• E) When corporate raiders are unable to mount a takeover bid

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