Executive Compensation (A Strategic Human Resource Management Topic)
Executive compensation is how top executives of business corporations are paid. The purpose of compensation of an executive is for an individual who is in a management position at highest levels. This category includes presidents, vice presidents, managing directors and general managers. Managerial compensation cannot be compared to the wage and salary schemes meant for in other employees in organizations. Secrecy is maintained in respect of executive compensation. Executive pay is not supposed to be based individual performance rather on organizational performance. Executive Compensation is the compensation paid to executives of business corporations. Organizations competing with each other to attract, retain and motivate managers for their strategic requirement. The compensation program serves three main purposes. It must attract executives with the skills, experiences, and behavioral profile necessary to succeed in the position. It must be sufficient to retain these individ...