What is executive compensation?
- Executive compensation is something to be considered when examining an opportunity in investment.
- An executive that has not been compensated properly may lose the interest of stakeholders and may not perform to the best of their ability. This can then become costly for the shareholders.
- The new regulations and laws have made it more clearer of compensation in organisations filings, lots of investors stay clueless about how to look for and read the critical information in reports.
- Individual investors are those who evaluate executive compensations, this can be a difficult task. However, there are many tools to assist in evaluating.
Types of executive compensation:
- Option grants
- Cash compensation
- Retirement packages
- Deferred compensation etc