Final answer:
The answer to the student's question is 'equity-based compensation'. Executives receive stock shares as a part of their compensation to align their interests with shareholders and incentivize the long-term success of the company.
Step-by-step explanation:
Company stock shares are the main form of executives' equity-based compensation. This form of compensation is designed to align the interests of the executives with those of the shareholders. Executives receive a portion of their compensation in the form of stock or stock options, which can incentivize them to work towards increasing the company's stock value over time. This is a common practice in many organizations as it is believed to incentivize long-term performance and success.