Question: Why do long - term incentive plans, such as stock options and stock awards, play a significant role in top - level managers' compensation? To
Why do longterm incentive plans, such as stock options and stock awards, play a significant role in toplevel managers' compensation?
To ensure uniformity in compensation plans across subsidiaries
To align managerial compensation with the wealth of common shareholders
To reduce agency problems caused by poor corporate governance
To address the disparity in managerial pay between regions of the world
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