Executive Compensation

Year after year, we see articles in the business press indicating that executive compensation is overly generous, poorly linked to performance, and poorly controlled by public boards. Nothing has changed in that regard, but now because of events at Enron, WorldCom, and the like, the SEC and the accounting standards board is much more interested in affecting change in this area. Boards are caught in a difficult dilemma. On the one hand, they must assure that they approve a plan that effectively attracts, retains, and motivates the CEO and other top management. On the other hand, they must not appear to be giving away the store and must exercise due diligence in assuring that pay and performance are properly tied to each other. HRBP can advice the executive compensation committee when reviewing the salary, bonus, and stock option plans for officers of the company.