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Which of the following would be the least effective in encouraging the CEO of a large corporation to act in the best interests of stockholders?
Which of the following would be the least effective in encouraging the CEO of a large corporation to act in the best interests of stockholders?
A.
Grant more authority to independent outside members of the company's board of directors.
B.
Pay the CEO more than the CEOs of other similar businesses.
C.
Require the CEO to buy stock in the company and hold it as long as he or she is CEO.
D.
Tie the CEO's compensation to the long-term profitability of the company.
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