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6. 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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6. 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 perquisites worth $250,000 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 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? More likely Les likely Vision Tech's stock price is currently trading at $27 per share. The consensus among analysts that the intrinsic value of Vision Tech's stock is $33 per share. Is Vision Tech more or less likely to receive a hostite takeover bid? Less likely More likely

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