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4. Stockholder and manager conflicts Executive compensation packages often tie performance to bonus and incentive awards, supplemental retirement packages, perquisites, and severance pay, in order

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4. 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. In an attempt to minimize agency problems in a company (potential conflict of interest between the company's managers and shareholders), attractive compensation packages are created to retain and encourage managers. In the best interest of shareholders, compensation packages should be structured in a way such that managers have an incentive to maximize the value of the company's stock price. long-run Vision Tech is a software company based out of San Francisco. Its stockholders ndividual investors and there is relatively little institutional ownership. If several pension and mutual funds were to take large positions in short-run stock, would direct shareholder intervention be more or less likely to motivate the firm's management? O Less likely More likely Vision Tech's stock price is currently trading at $42 per share. The consensus among analysts is that the intrinsic value of Vision Tech's stock is $33 "per share. Is Vision Tech more or less likely to receive a hostile takeover bid? O Less likely More likely

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