A company offer a competitive compensation arrangement in order to attract, retain, and motivate a qualified CEO to manage the organization.
This quick guide examines the elements of executive compensation and the process by which the compensation committee establishes pay packages. It examines the questions:
- What is the purpose of a compensation program?
- How do boards structure pay?
- What is the difference between expected, earned, and realized pay?
- How much do CEOs make?
- Are CEOs paid the “right” amount?