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Executive compensation package

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Reference no: EM133162220

Do you agree or disagree with her post? State why.

By Dieon:

Question: Executive compensation has resurfaced as a controversial issue. Research examples from the Caribbean region and discuss.

People in high authority usually receive executive compensation. Executive compensation is described as a payment or benefit designed for leaders, senior managements and employees who are at the executive level. Executive compensation is also referred to executive pay. According to the University of the West Indies (2022), executive compensation package may include base pay bonuses, capital appreciation plans, benefits, incentives, perquisites and insurance.

An example of executive compensation can be found on an article in the Cruise Industry News. .The titled of the article is "Royal Caribbean CEO Fain takes home $12 million for 2020". According to Cruise Industry News (2021), Fain's basic salary is $645,000.00, stock award is $11,171.14, change in Pension Value and NQDC Earnings are $154,879.00 and other compensation is $112,478.00.

These executive managements personnel tend to receive higher salaries than other employees within a company. This is because they play a fundamental role within the company in the decisions that they make and the way that they ensure that company operates smoothly. However, their high salaries are based on the company's performance, which is always risky. Therefore, it is important for employers to have a proper payroll structure to compensate the workers instead of offering company shares and additional incentives.

Reference no: EM133162220

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