Question $1$

Which of the following actions is least likely to ensure that managers' interests are aligned

with those of the shareholders?

Enforcing a clawback policy for bonuses in cases of financial restatements.

Setting performance benchmarks based on market share rather than stock price.

Designing compensation packages heavily weighted toward equity.

Providing cash bonuses directly linked to annual revenue growth.

Distributing stock options that are contingent on long$-$term company performance.