Clare, the ceo of femica inc., reports to the board of directors appointed by the shareholders

of femica. based on shareholder suggestions, the board ties clare's compensation to the

performance of femica. due to this pressure, clare begins devoting extra time to projects and

undertakes other activities to ensure that she has job security and that she receives adequate

compensation. the reasons why the board ties yelena's compensation to firm performance is to overcome

a. shareholder capitalism scenario.

b. inside director-outside director conflict.

c. fiduciary responsibility oversight.

d. principal-agent problem.