Executive compensation is a key factor in motivating executives to make the organization succeed. I believe performance based compensation is the most essential component of compensation that motivates employees towards competitive advantage. Performance based compensation rewards for providing excellent performance and go above and beyond the job requirements. Some of the rewards that go along with this component are year end bonuses, goal based bonuses, and commission. Basically, it all ties back to receiving extra money. Everyone loves getting extra money, so offering a money reward for an executive's performance will motivate the executives to work hard. This will help align the executives goals with the company's, so the company can achieve success, since it will drive strategic focus. I believe executive compensation is appropriate. I believe this because everyone can use motivation and some people lack self motivation, so providing rewards that will stimulate that motivation is not a bad thing. By motivating these executives, it will not only increase focus and productivity with the executives, but it will make the executives motivate their employees to work hard as well. This will then ultimately lead companies towards a competitive advantage and success