HR Glossary / Executive Compensation

Executive compensation, also called executive pay, refers to remuneration packages specifically created for members of executive management teams in order to motivate them to work in the best interest of shareholders.


What Are the Types of Executive Compensation?

There are different forms of executive compensation such as performance incentives. The most common types of compensation includes:

  • Money (salary, bonuses);
  • Option grants;
  • Long-term incentives (LTI);
  • Deferred compensation;
  • Retirement packages;
  • Additional benefits such as enhanced insurance;
  • Perquisites (private jet, travel reimbursement, meals, etc.).

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