If you are talking about complex salaries, the conversation is bound to lead to the pay determination and setup for an executive professional. Holding some of the highest roles within a company, executives have a lot of responsibility, and their pay should reflect that fact. Here is a look at some of the types of executive compensation.
The salary the executive is guaranteed as an employee
The executive salary is the baseline pay the executive is pretty much guaranteed to get every week or month. Salary is not an hourly sort of pay; instead, it is a lump-sum payment the executive is entitled to as long as they show up and do their job every day. Salaries can be figured according to the current market pay rates, the complexity of the executive's role in the company, and several other factors. Unlike other forms of compensation, salary is typically a negotiable thing; the right executive compensation consultant can help a professional negotiate a fair salary if they are interested in a position.
The bonuses that can come along with certain actions as an executive
Bonuses are a bit like the icing on the cake for a company executive; they are an additional form of compensation that just sweetens their salary, and these bonuses can be small or large. Some companies offer bonuses to executives when they reach certain sales performance levels in the company with the help of the executive's leadership. These bonuses, which are also often referred to as short-term incentives, can make the typical executive position look even more attractive than it normally would.
The long-term incentives the executive is entitled to after so many years of service
Long-term incentives can come in the form for things like shares in the company or shares of company revenue. It is not uncommon for executives in even small companies to be awarded with long-term incentives if they stick with the company in their position for a certain period of time. For example, an executive may automatically become eligible for a share of company revenue paid monthly once they have been with the company for ten years.
Overall, the average salary of an executive can be far more complex than the salary for other professionals. If you need help with negotiating a fair compensation for yourself, or you are a business owner who needs help with determining the right compensation for executives within the company, reach out to an executive compensation consultant for help.
Share26 September 2019
One thing I have always been good with is money. Even in high school, I always had a savings from my allowance and from working for the neighbors. I created this blog to help other young people understand the importance of financial responsibility even at a young age. If we start our adult lives knowing about financial responsibility, we can make it further in our lives before we suffer from the devastation of financial mistakes that can take years and years to pay back. Hopefully, what you learn here will help you avoid those financial mistakes and maybe help you recover from the ones you've already made.