Executive Compensation
Executive Compensation refers to the complete package of salary, bonuses, benefits, and other perks that high-level company leaders receive. This includes base pay, annual bonuses, long-term incentives like stock options, retirement plans, and special benefits. Companies use these packages to attract and keep top leadership talent while making sure leaders' goals align with company success. It's different from regular employee compensation because it often includes performance-based rewards and is typically much more complex. Other terms that mean the same thing are "C-suite compensation," "senior leadership compensation," or "executive rewards."
Examples in Resumes
Designed and implemented Executive Compensation programs for Fortune 500 companies
Led annual review of Executive Compensation packages for C-suite leadership
Managed C-Suite Compensation strategies aligned with company performance goals
Developed Executive Rewards programs that improved retention of senior leadership
Typical job title: "Executive Compensation Specialists"
Also try searching for:
Where to Find Executive Compensation Specialists
Professional Organizations
Online Networks
Industry Resources
Example Interview Questions
Senior Level Questions
Q: How would you design an executive compensation package that aligns with company goals while meeting market expectations?
Expected Answer: Should discuss balance between base salary, short-term incentives, and long-term incentives, explain how to benchmark against industry standards, and demonstrate knowledge of performance metrics and shareholder interests.
Q: How do you handle compensation negotiations for C-suite executives?
Expected Answer: Should explain the process of market research, working with board members, understanding competitive packages, and balancing company budget with executive expectations while ensuring regulatory compliance.
Mid Level Questions
Q: What factors do you consider when reviewing executive compensation packages?
Expected Answer: Should mention company size, industry standards, performance metrics, market conditions, internal equity, and regulatory requirements.
Q: How do you ensure compliance with compensation disclosure requirements?
Expected Answer: Should demonstrate understanding of SEC requirements, proxy statements, disclosure rules, and the importance of clear documentation and reporting.
Junior Level Questions
Q: What are the main components of an executive compensation package?
Expected Answer: Should list base salary, annual bonus, long-term incentives, benefits, and perks, showing basic understanding of how these elements work together.
Q: Why is executive compensation different from regular employee compensation?
Expected Answer: Should explain the complexity, scale, performance linkage, and strategic importance of executive packages compared to standard employee compensation.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of compensation components
- Compensation data analysis
- Report preparation
- Understanding of basic benefits administration
Mid (2-5 years)
- Market analysis and benchmarking
- Incentive plan design
- Regulatory compliance
- Executive benefits administration
Senior (5+ years)
- Strategic compensation planning
- Board presentation experience
- Complex negotiation skills
- Corporate governance expertise
Red Flags to Watch For
- No knowledge of SEC compensation disclosure requirements
- Lack of understanding of performance-based incentives
- No experience with executive benefit plans
- Unfamiliarity with compensation benchmarking tools
Related Terms
Need more hiring wisdom? Check these out...
Salary Transparency Laws: What HR Leaders Need to Know
Cutting HR Costs Without Sacrificing Quality: A How-To for Savvy Executives
Beyond Resumes: How Competency-Based Hiring Transforms Talent Acquisition
