Question in Finance :

Which one of the following is NOT an example of principal's attempt to alleviate the agency problems?

A. Your employer offers you a contract where 30% of your annual compensation is contigent on you annual performance evaluation. B. When lending to firms, banks usually add convenants in the contract. For example, they reserve the right to increase the interest rate if the firm's probability falls below a certain level. C. Many firms include stocks as part of their employees' compensations. D. None of the above