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Consulting firms and human resource departments have spent innumerable hours attempting to develop executive compensation programs that will align the goals of a firm's managers

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Consulting firms and human resource departments have spent innumerable hours attempting to develop executive compensation programs that will align the goals of a firm's managers with those of the firm's shareholders. Which of the following compensation packages is most likely to accomplish this task? An annual salary of $500,000 and a stock option bonus package that provides 100,000 shares after one year An annual salary of $800,000 An annual salary of $500,000 and a stock option bonus package for a total of 250,000 shares, with 50,000 shares vesting at the end of each of the next five years An annual salary of $250,000 and a stock option bonus package that provides 250,000 shares after five years True or False: A small number of insttutional Investors are often able and motivated to bring direct shareholder pressure on a few's management in an effort to reduce potential agency conflicts

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