In addition to their base salaries, manyWalmartmanagers earned over $10,000 in stock bonuses and profit-sharing, which results in total income of well over $100,000.As a result, the firm is contemplating a proposal to cap the total compensation of all its managers at $100,000 per year.Which of the following is true?

a.The firm should pay each manager a flat salary, regardless of each store's profitability performance, so that the shareholders can know the store's operating costs.

b.Capping managers' compensations would definitely reduce the managerial incentive to maximize the value of the stores under their control, and thus it may reduce the overall return of the firm's shareholders.

c.The firm should cap the managers' pay, since the managers are already paid a much larger income than cashiers, and this would continually allow for a bad public perception of the firm.

d.Capping managers' compensations would reduce the manager's annual salary, and would definitely increase the overall return for the firm's shareholders.

e.The firm should NOT cap the manager's pay, since the manager is more likely to shirk under-profit sharing.