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:

Deliberate

The process of carefully considering or discussing something before making a decision.

Wrongful Use

The incorrect, unethical, or illegal application or operation of something, often leading to harm or violation of rights.

Whistle-Blower

An individual who exposes illegal, unethical, or wrongful actions within an organization, often facing personal risk in doing so.

Abuses

Acts or situations that involve maltreatment or misuse, often resulting in harm or unfair treatment.