Make decisions that are in the interests of the owners

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Corporate managers work for the owners of the corporations. Consequently, they should make decisions that are in the interests of the owners, rather than in their own interests. What strategies are available to shareholders to help ensure that managers are motivated to act this way? Shareholders can do the following: (select all the choices that apply.) A. Write contracts that ensure that the interest of the managers and shareholders are closely aligned. B. Ensure that employees are paid a percentage of the company's net income. C. Mount hostile takeovers. D. Ensure that employees are paid with company stock and/or stock options. E. Ensure that under-performing managers are fired.

Reference no: EM131185854

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