$.$ Stockholder and manager conflicts

Executive compensation packages often tie 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.

Which of the following compensation proposals is most likely to be in the best interest of the company$$s shareholders?

A base salary of $$500,000$ plus a stock option package for $250,000$ shares, with $20\%$ of shares maturing at the end of each of the next five years

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

A base salary of $$500,000$ plus perquisites worth $$250,000$

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

Less likely

More likely

Vision Tech$$s stock price is currently trading at $$37$ per share. The consensus among analysts is that the intrinsic value of Vision Tech$$s stock is $$30$ per share. Is Vision Tech more or less likely to receive a hostile takeover bid?