Back to Assignment Attempts 2 1 Average 1.5/3 6. Stockholder and manager conflicts Executive compensation packages often tle performance to bonus and incentive awards, supplemental retirement packages, perquisites, and severance pay, in order to encourage the management team to align their performance with organizational goals In an attempt to minimize agency problems in a company (potential conflict of interest between the company's managers and shareholders), attractive compensation packages are created to retain and encourage managers. In the best interest of shareholders, compensation packages should be structured in a way such that managers have an incentive to maximize the long-run value of the company's stock price. Vision Tech is a software company based out of San Francisco. Its stockholders are mostly institutional Investors and there is relatively little individual ownership of these institutions dilute their positions and sell off their stake in Vision Tech's stock to several individual investors, would direct shareholder intervention be more or less likely to motivate the firm's management? More likely Less likely Vision Tech's stock price is currently trading at $20 per share. The consensus among analysts is that the intrinsic value of Vision Tech's stock is $28 per share is Vision Tech more or less likely to receive a hostile takeover bid? More likely O less likely Grade It Now Save & Continue Continue without saving