The International Market for CEO Samples †MyAssignmenthelp.com

Question: Discuss about the International Market for CEO. Answer: The international market for CEO is facing competition and the growing debate regarding the package of CEO continuous to make headlines. Despite the shareholders disgruntle British companies must increase the pay of CEO to compete with US (Cooper, Gulen and Rau 2016). However, companies have sought to address the issue by increasing the pay performance but it is an arduous task with shareholders expressing discontent against CEO increase in performance bonus. Revolts over pay may be rare but provides alarming indications of weak board and uncertain management succession. This may cause declining share prices with reduced investors returns. The boards that offers incentives packages to CEO faces the tricky path of long-term performance with uncertain organizations fortune (Almadi and Lazic 2016). The threat of state intervention is inescapable and chairperson facing shareholders disgruntlement may defend incentives with benchmarking and competition. With increasing demand for CEOs and high executives in the competitive market, incentives could help in matching with US. Though US have increased incentives by 9% in 2013 to Britains 1% rise, incentivising the CEOs pay may enable British firms to keep pace with US. Regardless of investors expectation from companies a rising tide of compensation may help in keeping a valuable CEO within the firm. References: Almadi, M. and Lazic, P., 2016. CEO incentive compensation and earnings management: The implications of institutions and governance systems.Management Decision,54(10), pp.2447-2461. Cooper, M., Gulen, H. and Rau, P.R., 2016. Performance for pay? The relation between CEO incentive compensation and future stock price performance.