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What is really meant by Executive Compensation ?

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تم إضافة السؤال من قبل AHMED IMRUL KAYES , Senior Consultant , HR Bangladesh Ltd.
تاريخ النشر: 2015/01/06
Remon Ramzy Rezk Mansour
من قبل Remon Ramzy Rezk Mansour , Treasury Back Office Officer , Emirates NBD Bank

Executive compensation or executive pay is composed of the financial compensation and other non-financial awards received by an executive from their firm for their service to the organization. It is typically a mixture of salary, bonuses, shares of or call options on the company stockbenefits, and perquisites, ideally configured to take into account government regulations, tax law, the desires of the organization and the executive, and rewards for performance.[1]

The three decades starting with the 1980s, saw a dramatic rise in executive pay relative to that of an average worker's wage in the United States,[2] and to a lesser extent in a number of other countries. Observers differ as to whether this rise is a natural and beneficial result of competition for scarce business talent that can add greatly to stockholder value in large companies, or a socially harmful phenomenon brought about by social and political changes that have given executives greater control over their own pay.[3][4] Executive pay is an important part of corporate governance, and is often determined by a company's board of directors.

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