Discuss the advantages and disadvantages of the following forms of managerial compensation in terms of mitigating agency

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Discuss the advantages and disadvantages of the following forms of managerial compensation in terms of mitigating agency problems, that is, potential conflicts of interest between managers and shareholders.(Appendix)

a. A fixed salary.

b. Stock in the firm.

c. Call options on shares of the firm.

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Investments

ISBN: 9780077261450

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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