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Calum, Heidi and Jonas are managers for Zip Co. They have been told that their salary will be based on company performance and that a bonus scheme will also be introduced. The bonus scheme will also be related to company performance. Which of the following best describes the approach to governance that Zip Co. Is using?
A. Stewardship theory
B. Agency Theory
C. Stakeholders theoryIt doesn’t seem to me that the bonus scheme has much to do with governance. If forced to choose I would go for B as what’s good formthe managers ismgood formthe company and its shareholders.
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