Question

Please discuss and explain your position on executive compensation. In your response, please include all types of compensation including, salaries, bonuses, stock options, loans and fringe benefits. Also, include specific examples from the business world to support your response. Be sure to cite your source(s).

Answer 1

Answer: Executive compensation- Are the rewards given to the top executives of the company in monetary or non -monetary form in return of their services and hard work in the company.

Salaries- This is regular/monthly pay, given to the employees/executives of the company. Salary is given to the person who is employed in the company. It is usually fixed.

Bonuses- Bonus is a monetary pay apart from salary. Bonus is given to the employees on their good performance and achievement of targets.

Stock options- Company gives shares to its executives, it is a non-monetary benefit. Executives have to keep the shares till a specific period or sometimes till retirement, after that, they can sell.

Loans- Company provides vehicle, home loan at very low interest rate to its employees/executives.

Fringe benefits- These benefits are apart from salary and wages. Examples: Company's car/cab service, Life insurance, health insurance.

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