TOP MANAGERS LEVEL COMPENSATION

Posted by admin on February 5, 2018 in Articles

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INSTRUCTORS NAME: TOP MANAGERS LEVEL COMPENSATION Executive employees, such as chief executive officers, chief financial officers, company
presidents, and other upper level managers are often compensated differently than those at
lower levels of an organization. Executive compensation consists of base salary, bonuses, long-
term incentives, benefits, and perquisites. 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. Executive compensation consists of base salary, bonuses, long-term
incentives, benefits. Total executive compensation has increased dramatically in recent years,
which has led to concerns about pay equity and ethics. Because of the strong focus on external
equity when determining executive compensation, internal equity is likely to be a concern.
Additionally, as the gap between pay at lower and higher levels of the organization increasingly
widens, many CEOs are perceived to be overcompensated. There are other ethical issues to be
considered, such as the motivation of executives based on their bonuses, incentives, and stock
option grants. Shareholders are owners of private and public companies. The shares of public
companies trade on regulated stock exchanges. Shareholders elect a company’s directors, who
appoint and supervise senior management. The share price reflects the level of shareholder
interest in a company and the extent to which management is able to deliver on the
shareholders’ expectations. To my recommendation is that Corporations can influence and
attract shareholder interest by being good corporate citizens, which involves caring for the
communities in…