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    CEO Compensation determinants and public awareness

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    What should be the determinants for a CEO's salary? I need to have at least three additional determinants.

    Also, does public awareness of the CEO's salary influence the branding of an organization? How? I need one negative and another positive example.

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    Solution Preview

    The determinants of a CEO's salary should be:

    1) Profitability- If the company is being profitable because of the strategic ideas implemented by the CEO; he should be compensated because all the stakeholders and stockholders would be financially benefiting from his strategic efforts as well.

    2) Mergers/takeovers- If the company underwent a merger or takeover that was negotiated or due to the CEO, again the stockholders and stakeholders would be financially benefiting ...

    Solution Summary

    The solution discusses CEO compensation determinants and public awareness.