GameGo is a publicly traded manufacturer of home electronics. Based on what you have read, which of these actions would be wisest for GameGo's board of directors to take to be sure that the company's new CEO is as motivated as possible?
A. Encourage the CEO to take all of her compensations in stock options, which will motivate her to keep the stock price high.
B. Encourage her to emulate Warren Buffett and to take a lower salary than she might command elsewhere.
C. Offer the largest bonus possible to prevent the CEO from leaving to go a rival firm.
D. Link the CEO's pay to her performance, but avoid high-powered incentives that may cause reckless behavior.
Answer: D
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