Chapter 4The Stakeholders
Having reviewed performance measurements and identified the five compensation elements, we will next examine the stakeholders in executive compensation. They are not only those directly concerned, but also those who affect, to varying degrees, the design of executive compensation—both the “how” and “how much,” as shown in Figure 4.1.
Figure 4.1. Executive Compensation Stakeholder and Rulemaker
The stakeholders are the executives themselves, other employees, the shareholders (directly and through their representatives on ...
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