Why is it critical for you to be ready

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Question: Executive Compensation

Executive compensation is a "hot" topic in the United States and has been for some time. There are central components and principles underlying the need to provide special pay packages to executives, specifically on issues related to base pay, bonuses, short-term incentives, stock and stock option plans, enhanced benefits, and perquisites (or "perks" as they are commonly called).

There is the notion as to whether executive compensation in the U.S. is excessive. Although popular press accounts suggest that it is, each of you will have to form your own opinion, particularly as you assume compensation management responsibilities for your employer (or a future one). As a compensation professional, you are likely to face many difficult questions from employees regarding the rationale for-and the fairness of-lucrative executive compensation packages.

Why is it critical for you to be ready? What can be done to make the function of compensation committees consistent with shareholders' interest? Explain your answer.

Reference no: EM132769324

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