Which of the following actions would be likely to reduce conflicts of interest between stockholders and managers? Answer • Congress passes a law that severely restricts hostile takeovers. ? • Managerial compensation is changed so that managers receive larger cash salaries but fewer long-term options to buy shares of stock. • The company changes the way executive stock options are handled, with all options now being vested after only 2 years rather than having 20% of the options awarded be vested every 2 years over a 10 year period. • The company's outside auditing firm is offered a lucrative consulting contract with the company. • The board of directors becomes more vigilant in its oversight of the company's management.