Question: Many publicly held corporations include a performance based component as part of their executive compensation package. For example, a CEO may receive a bonus if

Many publicly held corporations include a performance based component as part of their executive compensation package. For example, a CEO may receive a bonus if the stock price is higher than a stated amount at the end of the year. Should all large corporate executives be compensated based on their performance? What are the pros and cons? How does performance based pay align with shareholder interests?

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Compensating corporate executives for their performance is a healthy practice which should be maintained in the corporate world in order to run the bu... View full answer

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