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Compensating Executives

In addition to the oft-stated goal of maximizing shareholder value, in return for their efforts, corporate executives wish to obtain life’s luxuries and provide for their families and their futures. In the new “e-commerce” world, the current trend of abandoning high-salaried stable executive positions with “old economy” companies for high risk/high reward equity-based opportunities with “new economy” companies has resulted in somewhat of an upheaval in the executive market. The pedestrian pension plan arrangement has been superseded by more glamorous stock option and restricted stock plans.