One of the ways to reduce agency conflict is by

ADesigning an effective compensation package
BHaving managers report to the board of directors
CHiring outside monitors to keep track of the managers decision
DInstituting severe penalties for bad decisions.

The answer is: [A]: Designing an effective compensation package .
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Note: A well-designed compensation package is one of the most effective methods connecting the interests of managers with those of stockholders.
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One of the ways to reduce agency conflict is by ADesigning an effective compensation packageBHaving managers report to the board of directorsCHiring outside monitors to keep track of the managers decisionDInstituting severe penalties for bad decisions.

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Related Questions

One of the ways to reduce agency conflict is by

ADesigning an effective compensation package
BHaving managers report to the board of directors
CHiring outside monitors to keep track of the managers decision
DInstituting severe penalties for bad decisions.