Executive pay (also executive compensation), is financial compensation received by an officer of a firm. It is typically a mixture of salary, bonuses, shares of and/or call options on the company stock, benefits, and perquisites, ideally configured to take into account government regulations, tax law, the desires of the organization and the executive, and rewards for performance. Over the past three decades, executive pay has risen dramatically relative to that of an average worker's wage in the United States, and to a lesser extent in some other countries. Observers differ as to whether this rise is a natural and beneficial result of competition for scarce business talent that can add greatly to stockholder value in large companies, or a socially harmful phenomenon brought about by social and political changes that have given executives greater control over their own pay. Executive pay is an important part of corporate governance, and is often determined by a company's board of directors.
Read more about Executive Pay: Types of Compensation, Levels of Compensation, Controversy, Regulation
Famous quotes containing the words executive and/or pay:
“When you give power to an executive you do not know who will be filling that position when the time of crisis comes.”
—Ernest Hemingway (1899–1961)
“If you are not willing to lose all the labour you have been at to break the will of your child, to bring his will into subjection to yours that it may be afterward subject to the will of God, there is one advice which, though little known, should be particularly attended. . . . It is this; never, on any account, give a child anything that it cries for. . . . If you give a child what he cries for, you pay him for crying: and then he will certainly cry again.”
—John Welsley (18th century)