We know that if a corporation is to maximize shareholder wealth, the interests of management and the shareholders must be aligned. The simplest way to align these interests is to structure executive compensation packages appropriately to encourage managers to act in the best interests of shareholders through stock options and awards. However, has executive compensation gotten out of control?

Discuss whether executive compensation has gotten out of control and, if so, how this could create problems for the company and its shareholders.

Prepare a 4 6 page paper