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I need help responding to my peers. The information below is from my peers. I do not believe this is a black and white answer.
I need help responding to my peers. The information below is from my peers. I do not believe this is a black and white answer. On the one hand, I believe that the health of an organization relies heavily on the decisions and performance of the executives. With that as a blanket statement, I do believe that executives bonus structure should be reflected by the underperformance of the organization. However, here is the gray part, Waiker from Standford Business writes that organizations "don't want to penalize executives for costs incurred today that might not yield benefits until later on" (Waiker, 2021). Just like the example they used that if a new executive comes onboard that they "didn't have any say in the legacy costs of the prior management team" (Waiker, 2021). In conclusion, the executive bonus structure needs to be seen subjectively. I sure would not like to be punished for something I did not have a direct impact on. https://www.gsb.stanford.edu/insights/executive-bonuses-might-work-better-you-think
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