CEO Compensation

CEO Compensation

By
David F. Larcker, Brian Tayan
CGRI Quick Guide Series. Corporate Governance Research Initiative,
2015

A company offer a competitive compensation arrangement in order to attract, retain, and motivate a qualified CEO to manage the organization.

This Quick Guide examines the elements of executive compensation and the process by which the compensation committee establishes pay packages. It examines the questions:

  • What is the purpose of a compensation program?
  • How do boards structure pay?
  • What is the difference between expected, earned, and realized pay?
  • How much do CEOs make?
  • Are CEOs paid the “right” amount?