Executive Compensation

Executive compensation is the mix of financial and nonfinancial awards received by an executive from his or her employing firm as payment for the services rendered. The definition of an executive, and the roles performed, will vary by firm but usually includes those responsible for major organizational strategic and budgetary decisions, including the chief and deputy executive and financial officers and group, division, and department senior management. Executives also exist in the public sector and in commercialized and corporatized government agencies. Executive compensation is typically a mixture of salary, bonuses, stock and call options on the firm’s stock, other benefits such as medical cover and retirement plans, and perquisites (paid expenses) including better office and car parking spaces, sporting venue boxes and attendance, gym and ...