1. Banker's Pay - Redesigning Compensation Pay
However, this is not an adequate solution as it neither gives the CEO a reason to give the job his full potential nor shows the shareholders a true review of how the CEO is performing. ... The shareholders will not have a transparent view of the company or the CEO as the company revenue is affected by several factors beyond the job performance. ... Severance pay, a type of compensation scheme that guarantees the CEO pay when terminating the job, also used as an incentive to encourage risk taking. ... " The CEO can be risk adverse in case he will loose his job however severance pay is mean...
- Word Count: 2496
- Approx Pages: 10
- Has Bibliography
- Grade Level: Undergraduate