MGT 462 Chapter Notes - Chapter 14: Employee Benefits, Theory-Theory, Empirical Relationship
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Tend to be strategically important to the company. Positions tend to have built-in conflict, conflict that arises because different factions place incompatible demands on members of the group. Caught between the demands of upper management to meet production goals and the needs of employees to receive rewards, reinforcements, and general counseling. Board of directors comprises individuals from both inside and outside a firm who provide strategic advice on decision making. Companies are trying to populate their boards with outside directors who aren"t beholding to a ceo who appointed them. Disconnect between pay and performance of our nation"s top executives has been a source of contention for over 30 years. Executives take more risks when they are paid more heavily in stock options. Companies continue to place more emphasis on incentives despite evidence they don"t mirror actual ceo performance at all. Five basic elements of most executive compensation packages:
