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Structure of compensation packages

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"There has been a huge growth in CEO pay mainly due to the structure of their compensation packages, in which the bulk of the package is tied to the performance results of the company. Compensation packages for CEOs consist of base pay plus incentives, bonuses, and stocks (Carroll 2022). According to an article written by Carroll (2022), the salaries for CEOs from the largest companies in the U.S. increased 250 times than that of their average employees and this was due to the growing revenues which most of the CEO's salary is based. In addition, because of the talent war, companies are becoming more creative with their compensation packages for top management in order to attract and retain the best talent.

Reference no: EM133275658

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