Executive compensation is how a company’s top leaders are paid. Examples include salaries, incentives, benefits, or stock ownership programs.
What is executive compensation?
Executive compensation examines how a company’s top leaders are paid. Salary is the most prominent figure, but short-term and long-term incentives can be granted for exemplary performance.
Companies can be liable for compensation issues when executives are paid for expected future performance (pay for failure). Organizations with strong governance standards allow shareholders to provide feedback on executive compensation (say on pay).