Stakeholders in the compensation arena are as following: Shareholders or owners are the first stakeholders who establish the organization. Their compensation is affected through wealth maximization and it is done through achievement of certain goals and objectives. Shareholders appoint managers as their agent and managers work on behalf of them. They are the biggest stakeholders who affect strategic decision making process. Employees are the stakeholders that work within the organization. The contribute through feedback and inputs. A compensation plan is must to keep their motivation level up so that goals and objectives are achieved. ESOP is another form of compensation to the employees. Suppliers and vendors are associated with the organization and they are also affected by firms’ decision. They are the ones that make firms functional in some capacity and attract compensation due to change in approach by the firm. Customers are the buyers of product and services produced by the firms. Any negligence in it will attract compensation. Neighbors and societies are affected by the actions taken up by the firms are compensations are paid in terms of pollution control, social welfare and environmental care. Also, firms have to modify their decisions to make it appropriate for the neighbors and societies. Solution Stakeholders in the compensation arena are as following: Shareholders or owners are the first stakeholders who establish the organization. Their compensation is affected through wealth maximization and it is done through achievement of certain goals and objectives. Shareholders appoint managers as their agent and managers work on behalf of them. They are the biggest stakeholders who affect strategic decision making process. Employees are the stakeholders that work within the organization. The contribute through feedback and inputs. A compensation plan is must to keep their motivation level up so that goals and objectives are achieved. ESOP is another form of compensation to the employees. Suppliers and vendors are associated with the organization and they are also affected by firms’ decision. They are the ones that make firms functional in some capacity and attract compensation due to change in approach by the firm. Customers are the buyers of product and services produced by the firms. Any negligence in it will attract compensation. Neighbors and societies are affected by the actions taken up by the firms are compensations are paid in terms of pollution control, social welfare and environmental care. Also, firms have to modify their decisions to make it appropriate for the neighbors and societies..