Executive Pay Vs Executive Compensation

1039 Words5 Pages
In the recent past, firms have shown interest in applying performance measurement purposely to increase accountability and performance among executives. Many corporations are providing competitive incentive and compensation packages that align with the interests of company executives (CEOs). It is beneficial for a company to pay employees a compensation plan, which aligns with its performance package, productivity and financial position. Businesses have been profiling their highly compensated executives, and most of them lack a clear compensation plan. This paper examines different methods of compensation and their alignment with the productivity of executives in a company. The biggest winner in the compensation plans in America is the executives.…show more content…
Department heads earn a considerable amount of money. The principle used in determining the balanced salary is through a comparison with the domestic rates. This is to say that both the native and Growth of diligent boards. A more diligent Board will offer lower incentives. It thus calls for an individual to work toward balancing of the equilibrium. I resonate with the fact that incentives have to be offered to the executive committee through members. The marginal productivity ensures that individuals deliver to their maximum at the workplace. Maximum productivity leads to higher revenues for a company making it possible to provide more incentives. There are additional allowances besides incentives such as hardship allowances, which are offered to CEOs. The chief executives in the USA are accumulating good wealth from compensations of the base salaries, incentives, and bonuses making them the world’s leaders in compensations. The gap is currently narrowing down due to the application of the American Compensation Methods in Europe. US businesses have to establish long-term strategies that can attract quality skills and productivity amongst employees, which eventually attracts high compensations. Performance measurement helps a company to demonstrate accomplishments and analyze contributions and…show more content…
CEOs efforts are also appreciated and rewarded through indirect compensation through social security enhancers that will boost the CEO’s desire to steer a firm towards success. In addition, offering a proportion of a firm stake to the CEO is a form of compensation approach that grants the CEOs the opportunity of buy stakes of a firm they head to boost their commitment to the success of a firm (Heskett, Sasser & Schlesinger, 2015). Compensation of the CEOs based on varied approaches is vital to a firm’s
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