Briefly discuss mechanisms that can be used to align the interests of shareholders and managers. - 4137

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Briefly discuss mechanisms that can be used to align the interests of shareholders and managers. 

 

The interests of shareholders and managers can be aligned by setting up stock 

options, bonuses, and perquisites that are directly tied to how closely management 

decisions coincide with the interest of shareholders.

 
Solution Description

Briefly discuss mechanisms that can be used to align the interests of shareholders and managers.