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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1137 |
Essay's paper body
The committee should make it mandatory that executives hold a significant amount of the company’s stock.
Short term incentives
The remuneration committee may also implement some short term incentives. This requires the executive to have a base salary plus short term incentives or bonuses which are earned after meeting a performance criterion...
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An example would be Mr Sonny Sunan receiving a bonus on top of his salary for incremental profitability and revenue growth.
Long term incentives
Long term incentives usually are gained once a long term criteria (usually 3-5 years) is met. Executives may be compensated by cash and share options which usually have restrictions on the time frame from when the shares may be sold...
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