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Essay

Is Ceo Compensation Justified by Performance

Essay specific features

 

Issue:

Business

 

Written by:

Carole C

 

Date added:

September 11, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 437

 

Was viewed:

5466 times

 

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Essay content:

In response to the criticism that rewarding CEOs for current stock performance focuses on short term profit rather than on the long term Murphy argues that current stock market performance is an appropriate measure of long term potential. Therefore current stock performance is an appropriate basis for CEO compensation...
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Therefore current stock performance is an appropriate basis for CEO compensation. Murphy also argues that other incentives for the CEO have even closer ties to company performance than salary. For example, stock options restricted stock, and long term performance plans are determined directly by company performance...
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