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Chenmark Series 2: Ethos and Incentives - Ep.164

Think Like an Owner

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The Different Types of Incentive Compensation Structures for CEOs

CEOs are compensated on a kind of a dollar free cash flow method. Is that the incentive structure for anyone who has some equity or business level incentives within a company? Or is it basically all the same but just different amounts of that incentive? To be honest, it varies a little by company. It's up to that individual operator to determine what kind of incentive scheme works best for their particular business.

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