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This is my take of Executive compensation. I have seen some great perks given to people and its something to strive for.

The compensation of multilevel managers, and especially of CEO, generates a great deal of interest and strongly held opinions. Executive compensation is a very important thing to consider when evaluating an investment opportunity. Executives who are improperly compensated may not have the incentive to perform in the best interest of shareholders, which can be costly for those shareholders. Paying the top level manages is very important as well. There are many different forms of executive compensation offering a variety of tax benefits and performance incentives. Cash compensation is the most common. This is the sum of all standard cash compensation the executive receives for the year. The company will list the base salary for each key member of the management team, such as the chief executive officer (CEO), chief financial officer (CFO), director of sales and other divisional heads. Besides cash compensation a company can offer option grants.

Option grants is a list of all options granted to the executive. Stock options if used the right way, are a terrific way to inspire management to maximize shareholder value. Though, there is a downside to this type of compensation. Management is awarded a significant options grant that is barely out of the money, meaning if the stock price goes up a little, management will be able to exercise options, convert them to common stock and sell the shares to reap a quick windfall. Another and very important form of compensation is retirement.

Retirement packages are given to executives after they retire from the company. It is customary for some executives to receive health benefits upon retirement for years of service, or other realistic perks. These are important to watch because they can contain so called golden parachutes for corrupt executives or be payable regardless of whether the company meets its financial objectives or is even profitable.

Harroch, R. (2016). How Employee Stock Options Work In Startup Companies. Retrieved from https://www.forbes.com/sites/allbusiness/2016/02/2…