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The definition of Compensation management:
Executive compensation is a reward that is given to an executive for his or her services to the organization. This compensation is a mixture of bonus, salary and shares. This is a very vital part in a business organization that is managed by thecompany’s Board of Director.
They select that executive to give the compensation who has an important impact on value creation, decision making and company’s strategy. Pupils learn all about executive compensation management in detail and Executive Compensation management Homework Help supports them to improve their knowledge in this topic.
Characteristics of executive Compensation management:
There are four characteristics of executive compensation that are carefully management by the Board of Director. These are:
Pay package design:
This package contains six different compensations. These are annual incentives, salary, benefits, long-term incentives, change-in control agreements and perquisites.
Equity compensation:
This compensation package comes in form of business organization stock.
Performance-contingent pay:
This kind of compensation depends on the performance of the company.
Vesting schedules:
Executives get the compensation on their performance and services to the company.
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