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Question: Executive Pay Executive compensation, based on performance, can theoretically constrain pay, but companies are paying their top executives more and more. The median compensation of a CEO in 2013 was $13.9 million, up 9 percent from 2012.

What is the economic problem that CEO compensation schemes are designed to solve? Would paying executives with shares of the company's stock align their interests with shareholders'?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M93103243

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