Usually, the reason a company pays a CEO in stock is to align that person’s incentives with those of the shareholders. If the big boss gets all their money in a guaranteed salary, there’s no reason for them not to get fat and happy and sit on a yacht. If their pay is in stock, to be awarded over many months and years, then their incentive is to work. The stock price goes up if the company does better, and the company does better if the CEO is at their desk and not on a yacht. This incentive structure is supposed to keep the CEO working for the betterment of the shareholders.
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