Shareholders rely on CEOs to adopt policies and strategies that maximize the value of their shares. To motivate CEOs to maximize the value of their companies, boards of directors can consider all the following options except one. Which one is it?
A. Boards can require that the CEOs become substantial owners of company stock.
B. Salaries can be structured to provide penalties for poor performance.
C. Dismissal for poor performance is not an option.
D. Salaries, bonuses, and stock options can be structures to provide rewards for superior performance.
Answer: C
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What will be an ideal response?