Explore BrainMass

Trends in Executive Compensation

Explore the topic of executive compensation seeking information on trends in the area. Utilize at least three unigue articles, summarize and contrast the content of each article.

Solution Preview

The first article on executive compensation focuses on how companies are producing alternative measures of their top executives pay (1). These companies are seeking to persuade investors that executive pay is not as high as government measures imply. For example, General Electric points out that its Chief executive had a taxable income of only $7.82 million which was far less than the $21.6 million shown in the standardized summary compensation table required by the regulators. The difference between the two numbers was accounted for by the value of equity grants and the change in the value of the pension. The measures try to capture what the executives pocketed or could have pocketed in a given year. However, realizable compensation may include old stock or option grants that have been vested but not yet cashed. Since the definitions of these measures vary from company to company, the investor's ability to compare them is reduced. Companies feel that comparison of executive compensation should be based on what the executive actually takes home.

The second article ...

Solution Summary

Executive Compensation is explained in a structured manner in this response. The answer includes references used.