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1 year ago

The best method for reducing the agency problem for a large public corporation is:________

Business

1 answer:

n200080 [17]1 year ago

4 0

The best method for reducing the agency problem for a large public corporation is stock-based compensation.

<h3>What is stock-based compensation?</h3>

The total success of the company should decide the manager's compensation. If they own shares in the company, managers must avoid the conflicts of interest that come with principal-agent relationships. Implementing stock-based compensation should therefore be the greatest solution to the agency conundrum.

Stock-based compensation, also known as share-based compensation or equity compensation, is a way to give a firm's employees, executives, and directors ownership in the company.

Thus, it is stock-based compensation.

For more details about stock-based compensation, click here:

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Answer:

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3 years ago

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