Question: Agency problem arises when managers' interest deviate from that of shareholders. What of the following help to reduce agency problem in corporation? Managers' base salaries
Agency problem arises when managers' interest deviate from that of shareholders.
What of the following help to reduce agency problem in corporation?
Managers' base salaries
Bonus based on managers' years of experience in the company
Compensation based on the value of the stock
compensation based on the average of the industry's CEO package
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