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How do top managers influence executive pay? (Check all that apply.)

A) Setting their own compensation without oversight
B) Advocating for performance-based incentives
C) Aligning executive pay with company performance
D) Participating in compensation committees decisions

User Skomisa
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Final answer:

Top managers influence executive pay through advocating for performance-based incentives, aligning executive pay with company performance, and participating in compensation committee decisions.

Step-by-step explanation:

Top managers influence executive pay in several ways:

  • Advocating for performance-based incentives: Top managers may advocate for performance-based incentives, such as bonuses or stock options, which are tied to the company's performance. This encourages executives to work towards achieving company goals and increases accountability.
  • Aligning executive pay with company performance: Top managers may strive to align executive pay with the company's performance. This can be done through performance evaluations and tying compensation to key performance indicators.
  • Participating in compensation committees decisions: Top managers often participate in compensation committees, where decisions regarding executive pay are made. They provide valuable input and help determine appropriate compensation packages.

User Force Hero
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