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One way of aligning the interests of owners and managers of corporations is to increase the amount of cash compensation to the managers offer stock-based
One way of aligning the interests of owners and managers of corporations is to increase the amount of cash compensation to the managers offer stock-based compensation to the managers based on short term performance incorporate restrictive covenants in the debt agreements to prevent the managers from taking excessive risk limit the threat of takeovers offer stock-based compensation to the managers based on long term performance
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