Discuss the advantages and disadvantages of the following forms of managerial compensation in terms of mitigating agency

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Discuss the advantages and disadvantages of the following forms of managerial compensation in terms of mitigating agency problems, that is, potential conflicts of interest between managers and shareholders.
a. A fixed salary.
b. Stock in the firm that must be held for five years.
c. A salary linked to the firm’s profits.

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Investments

ISBN: 9780073530703

9th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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