Many of these concepts may be new to you as students. The homework will mostly be definitions or short answer to help you understand the topics. Definitions: Perquisite: a thing regarded as a special right or privilege enjoyed as a result of one's position. Explain how executive pay for CEOs follows along the lines of every labor market (supply and demand)? CEOs pay follow along the lines of supply and demand because of the pay for performance model. The more demand there is for a product, the better the company is going to perform fiscally. The better the company performs, the more money the CEO is going to earn annually.