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The Management of Executive Compensation

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THE MANAGEMENT OF EXECUTIVE COMPENSATION
Posted on November 16, 2011
1
EXECUTIVE COMPENSATION
Notes on
THE MANAGEMENT OF EXECUTIVE COMPENSATION…..
Executive compensation is the total remuneration or financial compensation a top executive receives within an organization. This includes a basic salary, any and all bonuses, shares options, and any other company benefit. Over the past three decades, executive compensation has risen dramatically beyond the rising levels of an average worker’s wage. Executive compensation is an important part of corporate governance, and is often determined by a company’s board of directors.
Executive compensation is a very important thing to consider when evaluating an investment opportunity. Executives who are improperly compensated may not have the incentive to perform in the best interest of shareholders, which can be costly for those shareholders.
While new laws and regulations have made executive compensation much clearer in company filings, many investors remain clueless as to how to find and read these critical reports. This article will take a look at the different types of executive compensation and how investors can find and evaluate compensation information.
WHO IS AN EXECUTIVE?
A person or group having administrative or managerial authority in an organisation. The chief officer of a government, state or political division.
Chief executive officer (CEO), one of the highest-ranking corporate officers (executives) or administrators . A chief executive officer (CEO) or chief executive is the highest-ranking corporate officer (executive) oradministrator in charge of total management of an organization. An individual appointed a CEO of a corporation, company, organization, oragency reports to the board of directors.
Responsibilities:
It is the responsibility of the chief executive officer to align the company,

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