Pay packages explained, Executive pay packages differ

Pay packages explained

Assignment Help Operation Management

Reference no: EM132133568

Pay Packages Explained

Executive pay packages differ substantially from typical salaried or hourly employee compensation because unlike typical employee pay, the vast majority of an executive's pay is contingent compensation and structured only to reward the executive for actual, positive company performance and growth in shareholder value. To this end, executive compensation packages typically utilize six distinct compensation components:

Base Salary

Short-Term Incentive

Long-Term Incentive

Employee Benefits

Perquisites

Severance/Change-in-Control Payments

A company's Compensation Committee will structure their executive's pay packages utilizing a combination of the above components to help achieve the company's Pay for Performance and/or Retention objectives.

Using this article and the text, work through the following: You are on a BOD and head of the compensation committee. The company sales are flat, profitability in the lower quartile for the industry that is growing at 5% per year. Outside consultants have determined it will take three years to turn the company around. Develop a structure for a compensation program for the CEO and key officers. Define the elements, potential measures and targets for a comp program.

Reference no: EM132133568

Questions Cloud

Make decisions rationally instead of emotionally : When do you feel you are more likely to make decisions rationally instead of emotionally? Why?

Effectively manage inventory and the supply chain : What are some strategies that you could use as a Health Care Manager to effectively manage inventory and the supply chain?

The facilities and faculty to handle enrollment : Southeastern Oklahoma State University's business program has the facilities and faculty to handle an enrollment of 2,000 new students per semester.

Taguchi loss function : Answer this question using the basic cost and returns/replacements percentage data without consideration of the Taguchi loss function.

Pay packages explained : Executive pay packages differ substantially from typical salaried or hourly employee compensation because unlike typical employee pay,

Time required to make the fifth and the sixth conveyors : what is the total amount of time required to make the fifth and the sixth conveyors?

Benefit of spending quality time producing detailed : What’s the benefit of spending quality time producing a detailed, specific outline?

Management focus-ford global strategy : What strategy is Mullaly trying to get Ford to pursue with his One Ford initiative? What are the benefits of this strategy? Can you see any drawbacks?

Returned from department of defense management : Karenna just returned from a Department of Defense management meeting where the dismal state of the budget was the principle topic.

User Account

All Pages