Of course , the company had done many things for him , but what of all the sacrifices he had made ? His whole heart and soul were tied to the company . In fact , one could hardly think of Dan Murphy without thinking of the company , in much the same way as prominent corporate leaders and their firms are intrinsically linked . But the company would still be here this time next year , and what of him ? Yes , he would leave the company strong , because by leaving it strong , it would strengthen his reputation as a great leader . His legacy would carry and sustain him over the years . But would it ? One must also live in a manner consistent with such esteem .
Being the CEO of a major company also has its creature comforts . Dan was accustomed to a certain style of living . How much will that suffer after the salary , bonuses , and stock options are no more ?
Arriving at the office by 7:30 a . m ., he left a note for his secretary that he was not to be disturbed until 9 a . m . He pulled out the compensation file and examined the incentive clauses in his own contract . The contract was created by the compensation committee of the Board of Directors . All of the committee members were outsiders , that is , not a part of the company ' s management . This lends the appearance of independence , but most were CEOs of their own companies , and Dan knew that , by and large , CEOs take care of their own . His suspicions were confirmed . If the company ' s financial results were the best ever this year , then so , too , would be his own personal compensation .
Yet what if there were uncontrollable problems ? The general economy appeared fairly stable . However , another oil shock , some more bank failures , or a list of other disasters could turn things into a downward spiral quickly . Economies are easily influenced and consumer and corporate psychology can play a large part in determining outcomes . But even in apparently uncontrollable circumstances , Dan knew he could protect himself and the financial fortunes of his company during the short term , which after all , was the only thing that mattered .
Upon further review of his compensation contract , Dan saw that a large portion of his bonus and stock options was a function of operating income levels , earnings per share , and return on assets . So the trick was to maximize those items . If he did , the company would appear vibrant and poised for future growth at the time of his forced retirement , he reminded himself .