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The idea behind incentives is to align the shareholders and the...

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  1. 5,524 Posts.
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    The idea behind incentives is to align the shareholders and the executives goals in a higher share-rice. If you start giving executives rewards that are actually a charity case for local communities, you are effectively misaligning the goals of shareholders and executives. Executives need to get real monetary rewards for their work. They then have the choice to do philanthropy and give to their charities IF they wish to do so but it has to be their choice. Hope this answered your 3rd point. In regards to why EY advises the committee, they would have global knowledge of how companies remunerate their executives and which structures work best.
 
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