Consulting firms and human resource departments have spent innumerable hours attempting to develop executive compensation...

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Consulting firms and human resource departments have spent innumerable hours attempting to develop executive compensation programs that will align the goals of a firm's managers with those of the firm's shareholders. Which of the following compensation packages is most likely to accomplish. this task? An annual salary of $500,000 and a stock option bonus package that provides 100,000 shares after one year An annual salary of $250,000 and a stock option bonus package that provides 250,000 shares after five years An anmual salary of $500,000 and a stock option bonus package for a total of 250,000 shares, with 50,000 shares vesting at the end of each of the nex five years An annual salary of 4800,000 In addition to well-desioned executive compensation packages, two other motivational forces can align the interests of managens with those of their shareholders. Which of the foliowing actions could be used to reduce the potential for these agency contlicts and ensure that the firm's managers will pursue the long-term wealth interests of their shareholders? Let the manager know that a takeover is possible if he or ste doesnt perform well. Let the manager know that he or she will be fired if the company's stock does not reach a certain target by the end of the year

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