True or False Management may be tempted to make decisions that benefit themselves rather than the...

True or False

Management may be tempted to make decisions that benefit themselves rather than the shareholders they represent. Management compensation, however, can be structured to better align management interests with shareholder interests.

Expert Solution

True,

Managment may be tempted to make decisions that will help increase their compensation at the shareholder's expense, but their compensation can be structured to include Stock options, where their fortunes will be tied to the increase in shareholder's wealth.

jeff jeffy answered 2 years ago

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