Executive Compensation
/ɪɡˈzɛkjətɪv ˌkɒmpənˈseɪʃən/
Definitions
- (n.) Monetary and non-monetary payment and benefits granted to top-level management as a reward for their performance and services.
The board reviewed the executive compensation package before approving the CEO's salary increase.
- (n.) Legal framework governing the disclosure, approval, and limitations of pay for corporate executives to align interests with shareholders.
Regulations on executive compensation aim to prevent excessive risk-taking by aligning incentives with company performance.
Forms
- executive compensation
Related terms
See also
Commentary
Executive compensation terms often appear in corporate law and securities regulation; drafting clarity is key to delineate components like bonuses, stock options, and benefits.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.