4. How is each of the three internal governance mechanisms— ownership concentration, boards of directors, and executive compensation—used to align the interests of managerial agents with those of the firm’s owners?
5. What trends exist regarding executive compensation? What is the effect of the increased use of long-term incentives on top- level managers’ strategic decisions?
6. What is the market for corporate control? What conditions gen- erally cause this external governance mechanism to become active? How does this mechanism constrain top-level manag- ers’ decisions and actions?