Reference no: EM132958538

The majority of the class seems to view that executives should not receive a bonus if the company is underperforming. One consideration I wanted to mention is there are often many leaders within the organization besides executives and they all play a role in the organizations success. So, while executive leaders do drive policy and the business, they normally do it with input from senior leadership within the company. I think we can all agree that there are probably some great executives that may be on the board of a failing company, so the responsibility of ownership would have to be shared.

While bonuses are a form of compensation, would you consider Company shares as a form of bonuses? Would you support underperforming executive bonuses if they were in the form of shares since this should give them more incentive as they would have more to loss when underperforming?