Steckholder and manager conflicts

Executive compensation packages offen tie performance to bons and incentive awards, supplemental retirement packapes, perpulsites, and severance pay, in order to encourape the management team to align their performance with erganizational goals.

Which of the following compensation proposals is most itely to to in the best interest of the company shareholders?

A babe salary of $$505,000$ pius pereustes $=0$th $$250,600$

A base salary of $5500,000$ phin a that aption pactage for $290,500$ shares, with $20\%$ of shares maturing at the end of each of the nerd five years

A base salary of $$500,000$ plus a stock option package for $250,000$ shares that mature in six months

Vision Tech is a software company based out of San Francisco. Its stockholders are mostly individual investors and there is relatively lirtie inativional ownership. If several pension and mutual funds were to take large positions in Vision Tech's stock, would direct shareholder intervertion be more or less likely to motivate the firm's management?

More IAvely

ters thely

Vision Tech's stock price is currently trading at $$27$ per share. The consensus among analysts is that the intrissic value of Vision Tech's sack is $$33$ per share. Is Wision Tech more or less likely to receive a hostile takeover bid?

Less likely

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