Few tears are shed for the earning power of the top executives of major publicly-traded corporations: the firms where data is visible and reliably reported in shareholder and related documentation. At the height of his success, Al Dunlap described in his book Mean Business a philosophy of executive compensation that came to hold sway in the late 1990s: “The best bargain is an expensive CEO In addition to understanding the components of executive compensation, there are issues of pay equity and ethics associated with pay for these types of employees. Total Reported Compensation: $102,210,396 Pay Ratio: 2,028 Mr. Bisignano was the second-highest paid chief executive in the country this year, and … Executive compensation consists of base salary, bonuses, long-term incentives, benefits, and perquisites. V. Compensation Framework: Policies, Process 8 Compensation Policies 8 Compensation Process 10 VI.

Our analysis draws primarily on two sources of data: annual executive compensation surveys published in Forbes magazine from 1975 through 1988 and Standard & Poor’s Compustat file. You’ll still likely receive a salary, but it might represent a smaller share of your potential earnings. Designing the right executive compensation plan may be a critical tool in driving your company’s performance.

Most organizations have separate executive pay plans and these plans focus much more on the individual, where it is the person for whom the compensation package is tailored. The topic of CEO compensation is popular in the business press and the subject of significant media coverage as the annual studies are released to the market.

Your paychecks will get fatter—and more complex.

As you travel up the ladder to the executive level, chances are your salary negotiations will be different than when you were a mid-level employee. Compensation plays a significant role in attracting, motivating and retaining highly qualified executive officers and leadership teams necessary to achieve a company’s goals. Employment and Termination Agreements 12 Appendix A: Best Practices in CD&A Preparation and Execution 14 Appendix B: Examples of Best Practices in Executive Compensation Disclosure 17 Appendix C: CD&A Production Timeline 31 executive compensation: The financial payments and non monetary benefits provided to high level management in exchange for their work on behalf of an organization.