THE MANAGEMENT OF EXECUTIVE COMPENSATION
Posted on November 16, 2011
THE MANAGEMENT OF EXECUTIVE COMPENSATION…..
Executive compensation is the total remuneration or financial compensation a top executive receives within an organization. This includes a basic salary, any and all bonuses, shares options, and any other company benefit. Over the past three decades, executive compensation has risen dramatically beyond the rising levels of an average worker’s wage.
Executive compensation is an important part of corporate governance, and is often determined by a company’s board of directors.
Executive compensation is a very important thing to consider ...view middle of the document...
The core duty of a CEO is to facilitate business outside of the company while guiding employees and other executive officers towards a central objective. The size and sector of the company will dictate the secondary responsibilities. A CEO must have a balance of internal and external initiatives to build a sustainable company.
For corporations, the CEO primarily coordinates external initiatives at a high level. As there are many other c-level executives (e.g. marketing, information, technical, financial etc.), seldom do corporate CEOs have low-level functions.
For emerging entrepreneurs, their acting position as a CEO is much different from that on the corporate level. As oftentimes other c-level executives are not incorporated in small operations, it is the duty of the CEO (and sometimes founder) to assume those positions.
Mid-sized companies borrow from corporate and entrepreneurial CEO responsibilities. There will not be all c-level positions available so the CEO must compensate for gaps either through delegating or assuming additional responsibility.
Executive director, the senior manager of an organization, company, or corporation.
The role of the Executive Director is to design, develop and implement strategic plans for their organization in a cost-effective and time-efficient manner. The Executive Director is also responsible for the day-to-day operation of the organization, including managing committees and staff and developing business plans in collaboration with the board for the future of the organization. In essence, the board grants the executive director the authority to run the organization. In some countries the Executive Director is accountable to the President or Chairman of the Board and reports to the board on a regular basis – quarterly, semiannually, or annually. The Board may offer suggestions and ideas about how to improve the organization, but the Executive Director decides whether or not, and how, to implement these ideas.
The Executive Director is a leadership role for an organization and often fulfills a motivational role in addition to office-based work. Executive Directors motivate and mentor members, volunteers, and staff, and may chair meetings. The Executive Director leads the organization and develops its organizational culture.
As the title suggests, the Executive Director needs to be informed of everything that goes on in the organization. This includes staff, membership, budget, company assets, and all other company resources, to help make the best use of them and raise the organization’s profitability and profile.
TYPES OF EXECUTIVE PAY
1. GOLDEN HANDSHAKE
This is a clause in an executive employment contract that provides the executive with a significant severance package in the case that the executive loses his or her job through firing, restructuring, or even scheduled retirement. This can be in the form of cash, equity, and other benefits, and is often accompanied by an...