The multinational corporation Worldclass Lighting, a global leader in the manufacture of lamps, with a presence in Asia, Hong Kong and Eastern Europe, hired your firm of auditors and detected that the incentives for the managers of the parent company or its subsidiaries are not structured appropriately to ensure that they focus on maximizing the value of the business. What do you recommend to the Worldclass Lighting corporation?

Select the correct answer

Establish a government run by council members

Establish the international corporate governance model

Establish a government of institutional investors

Establish a government run by militant shareholders