“Executive Pay” Please respond to the following:
- Some evidence suggests that there is a direct and positive relationship between a firm’s size and its top-level managers’ compensation. Explain what inducement you think that relationship provides to upper-level executives.
- Recommend what can be done to influence the relationship so that it serves shareholders’ interests.
preview of the answer…
It is essential for a firm to put executive compensation into consideration for it to be able to retain its well-trained personnel who are supposed to propel the company to the top. More so potential investors are constantly monitoring the growth of a firm before they decide to invest in it (Kay, & Van Putten, 2007). Investing in rewarding top-level executives is important because it motivates them to work harder. It also makes them feel appreciated and this is essential as it boosts their confidence. High confident executives can formulate and implement ideas that are aimed at the growth of the firm…
APA 326 words
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