You are here

Getting the formula for CEO pay right

A value creation component is essential to better gauge the true increase in shareholder value. So too is a strong disincentive to discourage CEOs from acting unethically.
Wednesday, March 4, 2015 - 05:50

The annual compensation of the late legendary Steve Jobs was only US$1 and he was rewarded entirely on stock options which depended on his ability to drive Apple's profits arising from product innovation in a highly competitive industry.

IN his recent speech on building a culture of trust in the financial industry, Ravi Menon, managing director of the Monetary Authority of Singapore, observed that "compensation structures tend to over-emphasise profits as performance measures". We cannot agree more.

Although directors'

Market voices on:

Pair your daily business read with the perfect cup of espresso.

Subscribe to The Business Times today to receive your very own Nespresso Inissia coffee machine worth $188.

Find out more at

Powered by GET.comGetCom