Executive Pay
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“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. As the firm size increases, the executive compensation also increases. That is because is the reward for labor or rather the actual effort of producing goods or services. The payment is not only the monetary income but also the deferred payments like pensions, holiday pay and other benefits such as health insurance. When a firm grows, it means that the top level management are working extra hard to meet the organizational objectives. The main organizations objectives are to maximize profits and to increase the shareholders value…………………………..
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