[Verse 1] Meet the CEO with a hefty pay Salary's just the start of their day Stock options waiting, restricted shares too Bonuses tied to what the company can do The board must decide how much they deserve While keeping shareholders' interests preserved [Chorus] Pay for performance, that's the golden key Salary, bonus, equity makes three Stock goes up, exec gets more Shareholders win, that's what it's for Align the goals, make interests meet Pay for performance makes it complete [Verse 2] Base salary's fixed, comes rain or shine A steady foundation, drawn on the line But bonuses change with how well they perform Annual targets keep executives warm Hit your numbers, get your reward Miss the mark, bonuses get floored [Chorus] Pay for performance, that's the golden key Salary, bonus, equity makes three Stock goes up, exec gets more Shareholders win, that's what it's for Align the goals, make interests meet Pay for performance makes it complete [Bridge] Stock options give them skin in the game When share price rises, they share in the fame Restricted stock vests over time Keeps them loyal, retention's prime Long-term incentives beat short-term greed Sustainable growth is what shareholders need [Verse 3] Performance metrics must be clear Revenue growth year after year Return on equity, profit margins too Measures that show what executives do Golden parachutes when they depart Clawback provisions for a fresh start [Chorus] Pay for performance, that's the golden key Salary, bonus, equity makes three Stock goes up, exec gets more Shareholders win, that's what it's for Align the goals, make interests meet Pay for performance makes it complete [Outro] When management wins, shareholders should too That's how executive pay should work for you Compensation that's fair and aligned Keeps everyone's interests combined
← Board of Directors: Structure and Roles | Shareholder Theory vs Stakeholder Theory →