Theoretical and practical measurement considerations

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Suppose you were a member of Company ABC's board of directors and chairperson of the company's compensation committee. What factors should your committee consider when setting the CEO's compensation? Should the compensation consist of a fixed peso salary, stock options that depend on the company's performance? Or a mix of the two? If "performance" is the to be considered, how should it be measured? This of both theoretical and practical measurement considerations.

If you were also a vice president of Company ABC, might your actions be different that if you were the CEO of some other company? Explain.

Reference no: EM132500947

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