Executive Compensation and Compensation Consultants

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Final Project Phase 1: Business-Related Research Premise

Aaron Bryant

Shorter University

Final Project Phase 1: Business-Related Research Premise

Background

Executive compensation is the financial and non-financial awards given to executives and other high ranking officials with in corporations. These awards typical come in the form of base salary, annual incentives, and long-term incentives, and perquisites such as personal use of corporate aircraft, company cars, and business expense accounts (Cormany, 2017). Compensation for executives has steadily increased over the years but there has been dramatic jumps in pay since the 1970s. The latest dramatic increase was in 2010, when executive compensation increased 11% (Cormany, 2017).

The board of directors are legally and morally responsible for monitoring and awarding executives and company leaders. In many cases they help decide what compensation is given to executives. To help with the contract decisions about executive pay, a compensation consultant firm may be hired.

Managerial Relevance

Many corporations use compensation consultants to help figure out how much to compensate there executives. If a consultant firm helps an executive increase his/her compensation, they can be later hired for more billable hours as compensation in return. So intern, does the hiring of compensation firms increase executive compensation.

Theoretical Framework

The hiring of compensation consultants and the increase in compensation of executives are related

Research Methodology and Design

A non-contrived case study using minimal interference will be used in this study.

References

Cormany, D. L. . P. candidate. (2017). Executive Compensation. Salem Press Encyclopedia. Retrieved from http://proxygsu-sho1.galileo.usg.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=ers&AN=89550569&site=eds-live&scope=site