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The advantage is simple, it allows the amount of cash given to move with the stock price. In the ceo case the board wants to align incentives (between the ceo a
by plasticchris 4y ago
The advantage is simple, it allows the amount of cash given to move with the stock price. In the ceo case the board wants to align incentives (between the ceo and the share holders).
- Retric 4y agoIn theory yes, but reality is more complicated. Steve Jobs is rather famous for renegotiating his contract after the stock price fell, but this is fairly common. The compensation package as a whole must be sufficiently attractive, and of course when you look into things like golden parachutes any one element of a compensation package never tells the whole story.