Ceo Compensation

Executive Compensation Jing Jia (School of Management, NJIT, Newark, NJ) Abstract This paper sums up the theoretical background for administrator stipend and depicts a comprehensive and contemporary situation of be practices. It also foresees future trends for executive compensation. Topics discussed in the paper accept chief operating officer incentive compensation principle, alternative approaches to executive compensation (including wages, bonus, restricted line of work, and executive stock options), comparison of the restricted stock and stock options, principles of executive pay design, and the relation between chief operating officer performance and pay. Keywords: Executive compensation, incentives, executive compensation plan design, CEO performance and pay, key component Theoretical background Executive compensation is how clear up executives of business corporations are paid . Although there are unlike pay practices methods for CEO stretching across industries and enterprises, the most administrative executive compensation contains four basic components which are: salary and wages, an annual bonus bind to performance, executive stock options, long incentive (including restricted stock plans and multi-year-based performance) .

Moreover, executives also can thwart what employee benefits offered, such as health amends, retirement benefit, life insurance and so on. When compared with other level management, CEO also pee good conditional and long term employment sign up with a base salaries, annual bonus payment fasten with performance and not influenced by the changes of enterprise control. The key Components of executive compensation 1. Base Salaries excludes any income that an individual may be permitted to acquire outside of duties to the applicant organization. The Executives base salary should be pertinacious by the owner of the firm through a broad survey to benchmark position across the general industry. indeed the firm should be supplemented useful information for market data. Finally,... If you need to get a full essay, order it on our website: Orderessay

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