INTRODUCTION Recent years have seen executive pay shift from cash to stock options in a bid to link pay to performance. However, this has in turn led to an explosion of executive pay that begs the question, “How much is enough?” In this essay, I will first clarify what constitutes executive pay, before highlighting the theory behind the increases in this pay and well as some of the arguments for and against these increases. Traditionally …showed first 75 words of 1694 total…

…showed last 75 words of 1694 total…effective C.E.O.s.. Unfortunately, putting limits on compensation and incentives will also mean limiting the ability of companies to compete with each other for executives. The solution may be to increase the availability of these few good men. Encouraging the top executives to work closely with young managers who have been ear-marked to do well in the future, may, over the long term, increase the number of competent executives for the future jobs.