In its simplest meaning, executive compensation is the compensation of executive or the package that a senior executive receives and all of the issues related to that. In public corporations, executive compensation is usually designed by top management and approved by the compensation committee and the board of directors. Compensation paid to the top executives of publicly traded corporations is a politically sensitive area, with critics claiming that amounts paid executives are too high, and corporations arguing they need to pay well to attract, retain, and motivate quality people.
The compensation committee cannot rely on experts provided by management and should have its own independent access to outside experts, including compensation consultants, counsel, and other advisors. In some companies the consultant is allowed to also work with management, while other companies the committee’s consultant is prohibited from doing any work for the company except at the committee’s direction. If you need advice from professional consultant, you can contact the executive compensation consultants at Board Advisory . Use your favorite search engine to get complete information about Board Advisory.
