Which one of the following is least apt to help convince managers to work in the best interest of the stockholders? Threat of a takeover of the firm by unsatisfied stockholders Implementation of a stock option plan Salary raises based on length of service Management compensation tied to the market value of the firm's stock Threat of a proxy fight

Salary raises based on length of service  

Explanation:

Agency conflict occur when the owners of a firm do not manage the company. Instead, the firm is managed by mangers. As a result, the interest of the manger might not be aligned with that of the owners and as a result the manager would not act in the best interest of the owners.

Agency problem is more common in public companies

If management compensation tied to the market value of the firm's stock, it would incentivise managers to take steps that would ensure that the value of the company's stock increases. This is because they would also benefit if the value of the stock increases

A stock option plan gives managers the option of buying a company's stock if certain targets are met. This would motivate an employee to work in the best interest of the shareholders

A proxy fight and a takeover would make the managers to lose their jobs. Most managers would not want to lose their jobs. A threat of a takeover or a proxy fight can serve to motivate mangers to act in the best interest of the stockholders

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.