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    CEO Compensation Methods

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    E+ Company board of directors is considering to compensate its CEO based on 30% of either excess sales growth or excess stock price growth if the growth is in excess of 8%. Sales amounted to $200,000 with a growth rate of 23%. Common stock price grew from a total of $400,000 by 18%. If excess common stock growth method was chosen as a basis for the CEOs compensation, how much would that be?

    a) $9,000
    b) $10,000
    c) $11,000
    d) $12,000
    e) None of the above

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    Solution Summary

    Brief calculations find the CEO compensation based on excess common stock growth.