Executive remuneration through stock-based compensation is flawed due to imperfect market pricing, especially highlighted during the Global Financial Crisis. Market pricing mechanisms create incentives for executives to inflate company values, leading to short-term gains and market distortions. Stock-based pay relies on the flawed Efficient Capital Markets Hypothesis, ignoring the realities of market instability and asset bubbles. The crisis exposed the dangers of flawed incentive systems and the limitations of modern finance theory.