nning of the company. The awarding of a bonus if profit criteria is met works the same way, however, awarding a bonus yearly can cause a C.E.O. to think only in the short term, stock options help alleviate this problem as they may be exercised at a future date.
             2. The recent trend over the last decade of downsizing firms, (that is the changing of the structure of the organisation to include fewer levels of management and a flatter organisational chart), has lessened the likelihood of promotion. It could be argued that the increase in compensation helps offset the change in the probability of promotion, therefore, the higher pay rate is an incentive for managers to strive for the top job.
             3. Economic theory argues that market forces set pay levels, in other words, the interaction of supply and demand set wage levels. However, in the market for C.E.O.'s the demand for a quality C.E.O. is so great and supply so limited, effective C.E.O.'s can ask for almost anything they want, it is a seller's market. Companies are so keen to hold on to their Executives that they ar
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