Linking Executive Compensation to Performance

This article examines how executive compensation can be effectively linked to company performance.

Performance-Based Compensation

Linking executive pay to performance metrics is a strategy used by many companies to align the interests of executives with those of shareholders.

Benefits of Performance-Based Pay

  • Encourages executives to focus on long-term goals.
  • Enhances accountability and transparency.
  • Can lead to improved company performance.

By implementing performance-based compensation, companies can drive better results.

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