Analyze the three internal governance mechanisms (ownership concentration, boards of directors, and executive compensation) and recommend a possible fourth mechanism that would help align the interests of managerial agents with those of the firm’s owners. Give a fourth mechanism that can that is align with the interests of managerial and the firms owners. Give good examples to support your response.
In your own words explain internal govern mechanisms
1. Ownership concentration
2. Board of directors
3. Executive compensation