Executive pay should not be associated with the financial performance of the organization, but with the overall value generated by the organization. Most CEOs receive their reward packages based on the financial returns they deliver to shareholders.

How much value has been created to employees, customers, vendors, society, and shareholders? The focus should not be only on enriching the shareholders, but on creating value for all stakeholders.

Have the executives created value for all stakeholders? The answer determines the overall executive compensation.