The CEO Compensation Controversy
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
The CEO compensation structure evolved over the years as a result of committees set up to legitimize CEO compensation packages. Till the early 1980s, CEO compensation was not linked to the company's performance. It was viewed only as an administrative function.
4] It is a right given to an employee to buy a given
quantity of stock of a particular company at a pre-determined price. It gave him
an ownership share in the company.
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