Hornbake Holdings compensated its top executives with $10 million of its own stock this year. What is the impact of this compensation method on Hornbakes shareholders?

A. The $10 million compensation does nothing for the shareholders, and only makes the managers wealthier.

B. This compensation with stock aligns the interests of the managers with those of the shareholders.

C. The size of this compensation will cause managers to put the interests of other stakeholders over the interests of the shareholders.

D. It depends on how much $10 million is relative to the net income of the firm.

E. The compensation method creates conflicts of interests between shareholders and managers.