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All main topics / BWL / Personalwirtschaft / Management II
22
What are Myths of Executive Compensation?
- Total shareholder return and earnings per share are good measures to use in executive pay-for-performance plans
- All equity compensation (including plain stock options and time-vested restricted stock) creates alignment with longer-term interests ofshareholders
- Executive compensation surveys and benchmarking reports accurately reflect the market for executive talent and can be used at face value
- Money is the key driver of senior executive and executive officers, and they will leave if boards renegotiate pay and pay-for-performance
programs
- CEO pay is driven by competition
- Compensation committees are independent
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Flashcard info:
Author: Egregius
Main topic: BWL
Topic: Personalwirtschaft
School / Univ.: Universität Mannheim
Published: 11.03.2010

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