All of the following would tend to reduce the agency problem between owners (stockholders) and managers, EXCEPT which one?

1.Bonus plans such as stock options for managers.

2.Managers tend to have more, as well as better, information about the firm than outside stockholders, because of asymmetrical information relationships

3.The threat of takeover and potential firing of existing management

4. all of the other option describe conditions that reduce agency problems

5. External audits of the firm's financial condition.