What are the approaches of executive compensation?
Understand the Problem
The question is asking about the different methods or strategies used in executive compensation. This involves an exploration of various approaches companies might take to reward their executives, including salary structures, bonuses, stock options, and benefits.
Answer
Salary, annual incentives, long-term incentives, benefits, perquisites, and severance/change-in-control agreements.
Executive compensation approaches include salary, annual incentives, long-term incentives, benefits, perquisites, and severance/change-in-control agreements.
Answer for screen readers
Executive compensation approaches include salary, annual incentives, long-term incentives, benefits, perquisites, and severance/change-in-control agreements.
More Information
Executive compensation is designed to align the interests of executives with those of the shareholders and incentivize performance that enhances company value.
Tips
A common mistake is to focus solely on salary and neglect other important components like long-term incentives that align executive interests with company goals.
Sources
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