Executive pay is typically structured to incentivize executives to achieve company performance consistent with increases in shareholder value. As a result, unlike most other employees, a majority of executive pay is contingent on performance; in other words, if the company or the executive fails to perform, the pay may never be received. However, if executives and the company perform well, they along with the company's shareholders stand to gain much more from exceptional performance. The pay packages given to the senior executives of corporations often consist of several components:
- Director Compensation
- Global Executive Compensation Issues
- Long-Term Cash Incentives
- Long-Term Incentive Plans
- Peer Groups
- Performance Metrics
- Performance Shares
- Perquisites
- Restricted Stock
- Severance & Change-in-Control (Golden Parachutes)
- Short-Term Incentive Plans
- Simplification of Executive Compensation
- Stock Options
Please click on any of the issues above or see the issues section of this site for further information on each of these components.