Another project manager has a family emergency and must leave. He has asked you to fill in for him during a team meeting to discuss a minor problem with the project. He has already distributed a detailed agenda and provided you with a copy. When you attend the meeting, several members of the team are making fun of the absent project manager's ethnic heritage. Your company does not have a formal diversity policy covering such behavior. What should you do

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers? a. change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover. b. eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock. c. for a firm that compensates managers with stock options, reduce the time before options are vested, i. e., the time before options can be exercised and the shares that are received can be sold. d. pay managers large cash salaries and give them no stock options. e. beef up the restrictive covenants in the firm's debt agreements.