StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Executive Compensation and Employee Benefits - Term Paper Example

Comments (0) Cite this document
Summary
There has been a significant rise in the executive compensation over the past thirty years exceeding the increasing levels of the average worker's wage. This has drawn the attention of the shareholders, the public and regulation by the government as a response…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.2% of users find it useful
Executive Compensation and Employee Benefits
Read TextPreview

Extract of sample "Executive Compensation and Employee Benefits"

Download file to see previous pages A company with a number of products, clear vision and unique ideas stands to lure the most competent candidates in each and every level but to maintain this momentum of better performance, it is imperative that the top executive level secures the best talent. A compensation package which is attractive to ensure these talents are maintained at the top management level of the company since they enjoy significant negotiating power and as such additional incentives up and above the compensation package can be impacting in luring an executive to join an organization. Challenging and unique opportunities do sway employees and thus in addition to an appealing compensation package, employee benefits have been applied so as to supplement it. Employee benefits has been very helpful in enhancing economic security of the employees thus curtailing labor turnover, increasing employees loyalty and improving productivity.
Compensation is any kind of remuneration that is received by a person in return for his/her performance of the company's or organizational tasks. There are four common methods of compensation: performance related pay (PRP) such as commission, bonus, time rate and piece rate; fixed basic pay; non-economic benefits such as house, car etc and finally ownership benefits where employees are awarded shares (Reid, 2004). Several factors influence the wage and the salary structure, these include: pressure from trade union, lowest wage rates, existing market rates, supply and demand for a particular job, the employee's qualification and the ability of the organization to pay. Compensation in the form of wages is normally given to a worker while compensation in the form of a salary is normally given to an employee. Executive compensation refers to the way senior executives for the business corporations or firms are paid. Executive compensation comprises of the basic salary, options, shares, bonuses plus additional company benefits (Bagley & Savage, 2006).
Forms of Executive compensation
There are a number of types of executive compensation which offers numerous performance incentives and tax benefits. They include:
Stock options -Refers to the privilege sold by a buyer to a seller that gives the latter a right rather than an obligation either to call(buy) or put(sell) the stock at an agreed price on a particular date or within a specified period (Bagley & Savage, 2006). Stock options ensures the CEOs interests are kept at par with that of shareholders since their value is subject to the price of the stock remaining above the strike price/exercise price (price upon which a stock will be sold or bought upon the exercise of the option) of the option. However stock options are open to abuse through options backdating and excessive risk seeking (Lawrence, 2002).
Restricted stock - These are stocks awarded to an executive but can only be sold once a specific conditions are arrived at and it carries a similar value to the stock's market price during time of the grant.
Deferred compensation -This is normally applied for taxation purposes and involves postponing compensation up to a certain future date. Executive perks compensation includes travel reimbursements, private jet and extra rewards given to the executives. Retirement packages awarded to executives following their retirement from the organization; this is open to abuse as corrupt executives can attach "golden ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Executive Compensation and Employee Benefits Term Paper”, n.d.)
Executive Compensation and Employee Benefits Term Paper. Retrieved from https://studentshare.org/miscellaneous/1501179-executive-compensation-and-employee-benefits
(Executive Compensation and Employee Benefits Term Paper)
Executive Compensation and Employee Benefits Term Paper. https://studentshare.org/miscellaneous/1501179-executive-compensation-and-employee-benefits.
“Executive Compensation and Employee Benefits Term Paper”, n.d. https://studentshare.org/miscellaneous/1501179-executive-compensation-and-employee-benefits.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Executive Compensation and Employee Benefits

Employee compensation and benefits

...?Running Head: ABBREVIATED OF YOUR CHOICE (all caps) and Section # of Employee Compensation and Benefits The employees of a company are considered as the most important one of its factors of production. A company with efficient workers is more likely to be successful as the work of the employees has a direct impact over the performance of the entire organization. The management of the organization's most valuable assets-the employees, is known as Human resource management. Human resource management involves the process of recruitment, selection, training, compensating and maintaining the work force in a way that they are best able to achieve the objectives of the organization. Discussion There are a plethora of different methods...
2 Pages(500 words)Essay

Issues with Executive compensation and benefits

Moreover, assessing the strategies adopted by those organizations to mitigate such challenges, recommendations for the management of EL Camino Hospital will be drawn on how to resolve the situation. Historical View of El Camino Hospital El Camino Hospital is regarded as one of the oldest non-profit healthcare organizations operating in the state of California, the United States. The construction of the hospital building started in the year 1958 with a total investment of around US$ 7.3 million. It is worth mentioning that the funds invested were generated though issuance of funds to the general public. The hospital started operating in the year 1961 with a total of 300 beds, which gradually increased over the years. The hospital...
8 Pages(2000 words)Research Paper

Executive Compensation

... Compensation," Journal of Economic Issues, vol: 39, iss:4 Laffie, L.S. (2004) "Audit Initiative Targets Executive Compensation: The IRS Will Examine Public Companies and Their Key Employees," Journal of Accountancy vol: 197, iss:3 Mallette, P., Middlemist, R. D. and Hopkins, W. E. (1995)"Social, Political and Economic Determinants of Chief Executive Compensation," Journal of Managerial Issues, vol: 7, iss:3 Pennathur, A. K., Gilley, O. W. and Shelor, R. M. (2005) "An Analysis of REIT CEO Stock-Based Compensation," Real Estate Economics, vol: 33, iss:1...
4 Pages(1000 words)Book Report/Review

Employee Compensation and Benefits

However, it is worthwhile to note that it is expected to vary annually given the fact that the employee’s selections may vary. From the above, salary is the biggest portion; and it includes commissions and other bonuses that may arise. Of important to note is that salary determine the level of some benefits including insurances. Health and welfare benefit which includes education reimbursement; vision and dental coverage are important benefits that extend to the employees’ families in order for the employee to have the needed resources to maintain good health at a recommended and affordable cost. As such, it is an advantage to the company given that it increases the well being of its employee contributing to the rise of producti...
5 Pages(1250 words)Essay

Recognizing Employee Contributions - Compensation & Benefits

...Recognizing Employee Contributions of the of the Introduction This study will focuson different approaches that are implemented by an organization so as to enhance performance level of employees. Human resource management is regarded as one of the critical organizational activities. There are various procedures through which team members can be managed and their interests be addressed. Employees usually contribute towards growth and success of an organization. These contributions have to be recognized appropriately as it helps in motivating team members. Benefit plans are designed by an organization in order to fulfill needs and wants of employees. Every firm develops a specific structure of compensation and benefits. Incentive pay...
9 Pages(2250 words)Essay

Employee Compensation and Benefits

...Employee Compensation and Benefits Package Employee Compensation and Benefits Package for a Secretary for the HR department of an organisation in Germantown, Maryland Introduction The purpose of this employee compensation and benefits package is to provide all the components of compensations and benefits of a secretary in a HR department of an organisation in Germantown, Maryland. The main components of the employee compensation and benefits include wages, bonus payments, and benefits such as healthcare coverage, disability insurance and retirement benefits. 1. Wages The wages of a secretary should be between $650 per week. This is based on the average wages of Maryland as provided by Bureau of Labour Statistics. The Bureau of Labour...
2 Pages(500 words)Assignment

A Critical Evaluation of Workplace Diversity: Measuring the Intended Benefits of Managing Diversity

Diversity represents a wide spectrum of tangible characteristics and somewhat less-transparent personality-driven attributes which either contribute or detract from various social interactions in the workplace. 

With this definition in mind, managing diversity represents the elements of embracing and incorporating a wide variety of human differences (or commonalities) into the daily practice of business so as to provide enhanced benefit to the entire workplace and its processes. The goal of managing diversity is for leadership and subordinates alike to take a rather proactive approach to building enhanced inter-personal relationships and then applying this harmony to goals of higher productivity and teamwork.
...
11 Pages(2750 words)Term Paper

Why Firms Outsource HR Activities and What Are the Potential Problems and Benefits of Outsourcing HR Activities

With minor changes here and there, these companies have taken giant strides in their respective human resources fields and thus made a mark for their own selves. It is a common phenomenon that a business can move away from a stand of firmness and consistency to one of a comprehensive weak one as the same is willing to grab hold of the varied means present within the market as well as the driving factors.

The United Kingdom has witnessed a lot of change within the economical shifts of late. What this echoes is the fact that people and more so the companies have started to move out of the UK in the wake of achieving different goals for their own selves and in a quest to achieve what they have not been able to, in the yes...
6 Pages(1500 words)Term Paper

Costs, Benefits and Risks of MerloniS Current Distribution System

Each supply-chain risk to forecasts, information systems, intellectual property, procurement, inventory, and capacity has its own drivers and effective mitigation strategies. To avoid lost sales, increased costs or both, managers need to tailor proven risk-reduction strategies to their organizations.” (Sodhi)

Distribution systems play an important role in the overall functioning of the supply chain management system of an organization. Any good distribution system requires that all the associated activities are coordinated in such a way that they facilitate the whole flow of organizational resources from one point to another. This is important because of the fact that a swift and smooth flow of organizational reso...
10 Pages(2500 words)Case Study

The Importance of Employee Empowerment in the Global World

Empowerment is the authority to make decisions within one’s area of operation without having to get approval; from anyone else. Here the operatives are encouraged to use their initiative to do things the way they like. To this end, the employees are given not just authority but resources as well so that they not only take decisions but implement them quickly. This empowerment means giving the employees the authority to make decisions and providing them with financial resources to implement these decisions (Koch & Godden, 1997 11).
Employee participation and empowerment participation means sharing the decision making power with the lower ranks of an organization in an appropriate manner (Lashley & McGoldrick, 199...
9 Pages(2250 words)Assignment

Potential Benefits of International Trade

.... Nelson (2000). This is a study set out to make a comprehensive and vivid answer to the question, “Which are the benefits of international trade and why are trade restrictions imposed by countries?” II. The Reason Why Countries Take Part in International Trade The countries ‘comparative advantage’ drives them to participate in international trade. Costs of factors of production and also the relative distribution are the ones that guide the specification of nations. Under oligopolistic business patterns, productions and involvement in trade are the major determinants of the competitiveness of specific firms involved as well as governments. The patterns of exports depend upon the particular governments’ policies and also those...
6 Pages(1500 words)Coursework

Health Benefits of Meditation

The techniques of yoga have been demonstrated to be effective in maintaining a healthy balance between the body and the mind. As such, yoga corrects any defects in the human body (Javnbakht, Kenari and Ghasemi 102).

There are four types of yoga, namely Bhakti yoga, Karma Yoga, Gyana yoga, and Ashtanga yoga. However, all these varieties of yoga aim to provide individuals with the ability to manage and develop the health of the body and the mind. Yoga diminishes stress and its associated disorders. Several studies in this area, have suggested that yoga is an efficient system to address stress-related disorders (Javnbakht, Kenari and Ghasemi 102).

The practice of Asanas has an interrelated effect on the various...
10 Pages(2500 words)Thesis

Employee Supervision

The type of employee supervision will depend totally on the management of the agency. This paper will discuss two commonly used models of employee supervision.
Employee Supervision can be defined as the process of the leader or senior management of an institution giving advice to junior staff on the policies, plans, and procedures of the institution. The leader advises on how to interpret and implement the plans, determining the extent to which they are being followed and advising his/her seniors thereof. Kalinich, Klofas, and Stolkovic, (2008, p. 54) define employee supervision as the process of coming up with personalized learning plans for the employees to be supervised as they deal with clients.
There is a number of...
7 Pages(1750 words)Assignment

Global Employee Information and Consultation: Replicating the European Model

A significant step to enhancing the employees’ right to information and consultation is the establishment of the European Works Council (EWC). The EWC Directive (94/45/EC) aims to improve cooperation in transnational companies and to allow trade unions to influence, at least indirectly, the decision-making of corporations (Lockwood and Williams). It requires community-scale undertakings and community-scale groups of undertaking to create this mechanism for regular consultation of the workforce. A ‘community-scale undertaking’ is one with at least 1,000 employees within the Member States and at least 150 employees in each of at least two Member States (Lewis and Sargeant).

An EWC is a forum that would a...
9 Pages(2250 words)Coursework

Employee Commitment in Multinational Organisations

... that have been set for them by the employers. The motivation that occurs amongst self managing employees is usually due to the fact that satisfied employees require minimum supervision and can produce the desired output on their own. The cost of hiring supervisors is therefore reduced. Workers tend to strive to achieve the set objectives in order to maintain the employer’s confidence in them so that they can get promotion or more benefits. Skills are improved due to specialization in specific tasks leading to increased production (Robert & Jerald, 2008). They are normally inventive and their creativity is usually an important asset to the organization. Managers need to invest in their innovativeness for improvement in the organization’s...
8 Pages(2000 words)Essay

The Benefits of Implementing EUC Environment

An automated computer control system that is used to run the invoicing process, and especially one that is available, can offer a company so much into realizing its goal and objectives and act as a highway through which growth and expansion could be realized without investing much in terms of money and time. Most benefits have to do with gaining the customers’ confidence and winning their loyalty to the IT clean services company.
To the users, the invoicing system offers cost-effectiveness as a crucial advantage, among others. To begin with, such a system saves the customers on time and money needed to travel to the company to request and pay for a service that has been offered. This process has been done initially in a...
6 Pages(1500 words)Term Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Term Paper on topic Executive Compensation and Employee Benefits for FREE!

Contact Us