Dean Carol Stephenson on Executive Compensation

By Stephenson, Carol | Ivey Business Journal Online, May/June 2004 | Go to article overview

Dean Carol Stephenson on Executive Compensation


Stephenson, Carol, Ivey Business Journal Online


According to the latest Globe and Mail Report on Business survey on executive compensation, Canadian CEOs "took home an average of about 8.3 percent more in 2003 than in 2002," which includes "all forms of compensation, such as gains from exercising stock options." With "Canada's benchmark S&P/TSX index up 24 percent" and profits "climbing an average of 107 percent" last year, many would say that shareholders received fair value for the dollars invested in rewarding top executives. Nevertheless, the controversy surrounding executive compensation continues unabated.

The major reason for that controversy, excessive and at times inappropriate compensation, is why a new era has arrived in executive compensation. As the articles in this issue of the Ivey Business Journal illustrate, the notion that executive compensation should be linked to company performance has finally become a reality. By actively questioning why and how executives are compensated, shareholders are largely responsible for this new reality.

Essentially, I believe that executive compensation systems must accomplish three vital goals. The first is ensuring that executives are rewarded not simply for meeting quarterly or annual targets, but for their long-term track record in creating wealth for shareholders.

Stock options, the traditional incentives for securing long-term growth, have come under attack. But as Jeff Kozan and Claude Belanger point out, changes to stock options plans, such as shorter option terms to reduce windfall gains or longer vesting periods to encourage executive retention, can address shareholder concerns. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Dean Carol Stephenson on Executive Compensation
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.