Shareholder value and executive compensation

Abstract

The creation of shareholder value should be the springboard for executive reward. This principle is based on the simple precept that the market is rational—that it responds quickly and efficiently to change, and that it rewards sustained high performance with high market to book ratios.

Citation

Brindisi, L.J. (1985), "Shareholder value and executive compensation", Planning Review, Vol. 13 No. 5, pp. 14-17. https://doi.org/10.1108/eb054116