Question

By tying the salaries of top corporate managers to the price of the corporation's stock, corporations hope to avoid:

Answer 1

the principal-agent problem

Step-by-step explanation:

In the case when there is a tied of the top corporate managers salary with the price of the corporation stock so here the corporation should avoid the principal agent problem as it deals with the conflict with respect to the priorities that lies between the person and the representative.

So the above should be the answer