Most Beneficial Executive Compensation

Executive compensation
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The relationship between the shareholders of a company and its management is a principal-agent relationship. The executives of the company act as agents of the shareholders. The primary purpose of the executives is to increase shareholders’ wealth. In order to align the interests of shareholders and executives, the directors of the company should come up with compensation plans which ensure this is achieved (Kotnik, Sakinç and Guduraš, 2018). Executive compensation is a reward offered to top management for their service to the company. The reward structure should ensure retention and alignment of top management interests with those of shareholders.
Aiming to be an executive in the company, I would prefer a compensation package that protects both my short-term and long-term interests and shareholders'. The package should include fair financial compensation for the services rendered to the company. This should be in line with the compensation of other executives in the company. This type of compensation will ensure I’m motivated to deliver my responsibilities in the short term.
The second element of the compensation package should be share options. This will align my long-term objectives with tho...