Executive compensation is the financial award given to the employees who occupy the highest positions in the company and have the strongest influence on its activity and strategy. It is natural that every big company has its board of officers and presidents who fulfill such duties as decision making, solution of the most urgent problems, creation of the ways of the company’s development, creation of the strategies and policies which would increase the company’s success, popularity and profit. Being on the highest positions of the corporate ladder the board of the executives and other influential employees receive the highest salary, take advantage of various bonuses, financial benefits, etc. The attitude towards executive compensation is quite different, because on the one hand, these people work hard to make the company work professionally and effectively.
Due to their ideas and creativity the company develops and broadens its production and makes much money becoming able to compete on the market. On the other hand executive compensation is often so high, that the sums of rewards can not be called the adequate and fair ones. Nearly every novice and low level employee does not earn even the hundred’s part of the executive compensation of an officer or vice-president and sometimes it causes conflicts in the corporate human resource environment. In the times of crises and other unfavorable moments when the company has to cut salary to the common employees, the executive compensation is probably never cut and it provokes scandals and conflicts.
Executive compensation is the problem which touches upon the monetary reward for the most influential people of the company who take the active part in the creation of the direction and strategy of the firm’s work. The young professional is able to dwell on the most thought-provoking moments of the issue and observe the problem of executive compensation from the alternative side. One should explain the term of executive compensation in the professional way, define the factors which influence it, present the core elements of compensation and provide the reader with the definite examples of executive compensation in different firms in different periods of the company’s activity.
The result of the research should evaluate the student’s attitude towards executive compensation and present the student’s ideas about the fairest system of compensation.
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