A 2 million dollar salaray compared to a 1 million dollar salary may not be necesaart to motivate a CEO, but can be necessary to attract that specific CEO. Tournaments will only work if they depend on skills or hard work, not on luck and favouritism. It can also create perverse incentives, like sabotaging. Than it makes more sense to pay bonuses based on the performance and indicate that cooperative behaviour will be rewarded.

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