Read Setting Executive Salaries scenario.
After reviewing the information, respond to the following two questions in an essay (introduction, body, and conclusion) format.
Management Exercise Questions
Minimum word count for each question is 200 to 250 words.
1. Based on the details provided in the textbook and the above scenario, what are the advantages and disadvantages of tying an executive's pay to the company's performance? Provide details and examples to support your answer.
2. Based on the details provided in the textbook (decision styles, Exhibit 14.7) and the above scenario, how would you explain to concerned shareholders and employees why it is so important that the CEO receive a multimillion-dollar salary package? Provide details and examples to support your answer.