Executive Compensation

What is Executive Compensation?

 

‘Executive Compensation’ refers to the compensation packages paid to the top executives of a company such as the CEO, CFO, CTO, etc for their services. It differs a lot in structure and amount compared to the compensation provided to the other employees.

 

For example, executive compensation often includes the shares of the company as a part of the benefits package. This not only helps in motivating the employee to work harder to increase the stock prices, but also helps them save taxes on their income.

 

Executive compensation has grown exponentially in recent years and it has led to criticisms from various parties involved. The compensation difference might be demotivational for the lower-level employees and hence it has been a point of controversy in the past.

More HR Terms

Key Performance Indicators (KPIs)

What is Key Performance Indicators (KPIs) ?   ‘Key Performance Indicators’ is a tangible value that shows how effectively a company is achieving its business

Sick Leave

What is Sick leave? Sick leave is a paid time off that every employee receives when they feel sick or unwell or need to speed

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