Company success should determine executives' compensation. The rise of an executive's pay from around the 80's believes one to think that executives are an exclusive group of professionals with business talent. However not all companies perform very well and while some companies do outperform others, does success really mean only financial gains. Studies have very recently suggested that an executive's salary should also be determined by his/her social goals such as public health.
I think executives in companies should be rewarded for the company success that they help achieve. However, I don't think it should stop there. I think other employees should be compensated as well. At the same time, the compensation needs to be balanced. If you're paying a phone salesman $50 an hour simply because the company is doing well, your company may not grow and eventually fail.
Executive compensation should be based on the company's success. This will propel the stock price, creating value for the shareholders. It is also beneficial to the other stakeholders, such as customers. This will give the proper incentives to executives to perform. A guaranteed payout does not accomplish this as effectively.
As an executive to a company, you will need the ability to draw in the public to make them aware of your company. Once the public is a fan, and the dollars begin rolling in, do the executive's benefit from the money. If the company begins to fail, the executives begin losing their salary in hopes they work together to better the company and keep employees.