[Harmless Teddy Bear]

What about companies that aren't large enough to issue stock?

Such companies are family owned for the most part and the CEO has a great incentive to keep the company profitable. Aunt Myrdal and Uncle George will make his life a living hell if he screws up.

What about companies that are large and issue stocks, but don't pay dividends?

You figure out what dividend they would pay if they did.

What about CEOs who come into a troubled company, and lay the groundwork to turn it profitable?

If it turns profitable, then he gets a very nice payday.

a reasonable compensation is due,

And he would get it. It gives him "skin in the game".

[Lou L]

I think you're looking at CEO compensation too simply, especially your advice about calculating "probable" dividends. Also, for many troubled companies as I described, turning the ship around in the right direction is one thing; becoming profitable enough to fairly compensate is something else. What person would take such a job? Would you?

As for skin in the game, large, Fortune 500 companies should have active boards of directors that look out for shareholders best interests. They have a fiduciary responsibility to do so. These same boards should be monitoring the CEO's performance, and adjusting compensation accordingly.