Should the managers of a company own sizable amounts of common stock in the com- pany What are the pros and cons?

Managers owning sizable amounts of common stock can align their interests with shareholders, potentially driving better company performance and decision-making. This ownership can foster a sense of accountability and commitment to the company's success. However, it may also lead to conflicts of interest, where managers prioritize short-term stock performance over long-term sustainability, or engage in riskier behavior to boost share prices. Additionally, excessive concentration of wealth in a single investment can create financial risk for managers.