Editing Incentive (section)

=== Executive compensation ===
{{Main|Executive compensation}}
The board of directors in a company plays an important role in creating incentives for CEOs so that their best interest aligns with that of the shareholders. CEOs can be given incentives in many forms, including salary, bonuses, shares, and stock options to reward spectacular performance while penalties can be imposed for unsatisfactory performance. To ensure that the CEOs are appropriately incentivized, CEOs can be made the substantial owners of the company's stock by the board of directors. CEOs that own a portion of the company's stock will have an incentive to work towards the common best interest of themselves and the company shareholders. Threat to dismiss the CEOs for unsatisfactory performance can also act as an incentive to reinforce the performance of the CEOs, which can in turn maximize the company's value. The possibility of dismissal will increase CEOs’ accountability for their own actions considering that the possible dismissal would likely lead to a poor reputation for themselves. As a result, a potential increase in work engagement and performance can be seen.<ref name=":9">{{Cite journal |last1=Jensen |first1=Michael C. |last2=Murphy |first2=Kevin J. |date=Winter 2010 |title=CEO Incentives-It's Not How Much You Pay, But How |journal=Journal of Applied Corporate Finance |volume=22 |issue=1 |pages=64–76 |doi=10.1111/j.1745-6622.2010.00262.x |s2cid=219968200 |issn=1078-1196}}</ref>

Apart from monetary incentives, non-monetary incentives also play a part in increasing the work performance of CEOs. Non-monetary incentives can be introduced in the form of benefits such as power, public acknowledgement, prestige, and title. However, some argue that non-monetary incentives are less impactful'''.''' <ref name=":9" />