Two objectives influence executive compensation

Two objectives influence executive compensation:
<=1=> Ensuring that the total compensation packages for executives are competitive with the compensation packages in other firms that might employ them, and
<=2=> Tying the overall performance of the organization over a period of time to the compensation that is paid to executives. It is the second objective that critics of executive compensation believe is not being met. In many organizations, it appears that the levels of executive compensation may be unreasonable and not linked closely to organizational performance.

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