Understanding Executive Compensation Alignment

In a recent shareholders' meeting of Acme Corp, the board of directors proposed changes to the executive compensation package for the company's CEO. The proposed package includes a mix of base salary, performance-based bonuses, and stock options that are designed to align the CEO's interests with those of the shareholders. The board believes that this compensation structure will motivate the CEO to drive sustainable growth and profitability.

Which of the following statements best describes a key aspect of the proposed executive compensation package?