Executive compensation consists of salary, bonus, long-term incentives, and perquisites. Salary makes up 40-60% of compensation but is subject to taxes, while bonuses and stock options are incentives. Perquisites include benefits like cars, clubs, and first-class travel. Compensation also includes retirement benefits, health insurance, and vacations. Unique features of executive pay include secrecy, varying amounts between executives, and tying pay to organizational performance. Companies use various strategies like cost-to-company packages, performance-linked payments, and flexible benefits to motivate and retain executives.
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?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
BDO Consulting Group, an Israeli consulting firm, is holding a seminar on October 12th about managing change in organizations. The seminar will be led by Keren Keren, a partner at BDO, and will provide tools and methods for effective change management. Interested people can register by emailing Keren Keren at kerenk@bdo.co.il or calling 03-6389317 for more information.
Executive compensation consists of salary, bonus, long-term incentives, and perquisites. Salary makes up 40-60% of compensation but is subject to taxes, while bonuses and stock options are incentives. Perquisites include benefits like cars, clubs, and first-class travel. Compensation also includes retirement benefits, health insurance, and vacations. Unique features of executive pay include secrecy, varying amounts between executives, and tying pay to organizational performance. Companies use various strategies like cost-to-company packages, performance-linked payments, and flexible benefits to motivate and retain executives.
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?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
BDO Consulting Group, an Israeli consulting firm, is holding a seminar on October 12th about managing change in organizations. The seminar will be led by Keren Keren, a partner at BDO, and will provide tools and methods for effective change management. Interested people can register by emailing Keren Keren at kerenk@bdo.co.il or calling 03-6389317 for more information.
BDO Consulting Group provides consulting services across multiple industries. It has experienced declining revenues in recent years from $591 million to $271 million due to challenges in key sectors like healthcare and financial services. The company is diversifying its service offerings and expanding into new markets like cloud computing to boost growth. BDO aims to increase average revenue per user and profit margins through strategic initiatives around service bundling, upselling, and cost optimization.
BDO Consulting Group provides consulting services across multiple industries. It has experienced declining revenues in recent years from $591 million to $271 million due to challenges in key sectors like healthcare and financial services. The company is diversifying its service offerings and expanding into new markets like cloud computing to boost growth. BDO aims to increase average revenue per user and profit margins through strategic initiatives around service bundling, upselling, and cost optimization.
1. תיקון 02 לחוק החברות
פרופ' אסף חמדני, האוניברסיטה העברית
2102.21.72
2. תגמול בכירים לאחר המשבר הפיננסי
• צדק חברתי ופערי שכר
▫ בכל המגזרים
▫ גובה שכר
• טובת התאגיד )בעלי המניות(
▫ חברות ציבוריות
▫ גובה שכר ומבנה תמריצים
• נטילה מופרזת של סיכונים
▫ המגזר הפיננסי
▫ מבנה תמריצים
3. תגמול בכירים לאחר המשבר הפיננסי
• טובת התאגיד )בעלי המניות(
▫ חברות ציבוריות
▫ גובה שכר ומבנה תמריצים
4. תגמול בכירים: ארה"ב ובריטניה
• הבעיה: שלטון מנהלים
• הפתרון:shareholder empowerment
▫ מעורבות בנושאי תגמול:
Say on Pay
אישור מצנחי זהב
▫ מינוי דירקטורים:
הצעת מועמדים מהציבור )(Proxy Access
5. תגמול בכירים: ישראל
• שלטון מנהלים
• בעלי שליטה
▫ שכר לבעלי שליטה
− הבעיה: ניגוד עניינים מובנה; חשש לעושק מיעוט
− הפתרון: תיקון 61
▫ שכר למנהלים מקצועיים
− הבעיה ?
− מבנה פירמידאלי
6. הנהלה מקצועית וניגודי עניינים של בעלי שליטה
• ועדת תגמול
▫ התמריצים של חברי הוועדה.
▫ מבחן הגינות מלאה?
• אישור האסיפה
▫ "עניין אישי" באישור = "עניין אישי" בעסקה עם בעל שליטה?
▫ קשרים עסקיים מתמשכים עם בעל השליטה?
7. תגמול בעלי שליטה לאחר תיקונים 61 ו-02
• ועדת תגמול
• מדיניות תגמול
• אישור פרטני של שכר )ללא אפשרות סטייה(
▫ צורך במדיניות תגמול לנוכח אישור פרטני מחייב
▫ דמי ניהול?
8. תגמול מנהלים ובעלי שליטה
• מדיניות תגמול ראויה חייבת לקחת בחשבון:
▫ יעדי התאגיד והנסיבות
▫ מבנה הבעלות
▫ מעמדו של נושא המשרה וזיקתו לבעל שליטה
9. מצנחי זהב
• מנכ"ל בחברה ללא בעל שליטה
• מנכ"ל מקצועי בחברה עם בעל שליטה
• בעל שליטה כמנכ"ל
10. נקודות לסיום
• האם ניתן היה לפעול אחרת?
• מה תהיה ההשפעה בפועל?
▫ יועצי תגמול
▫ גופים מייעצים למוסדיים
▫ רשות ניירות ערך
▫ בתי משפט
▫ ציבור המשקיעים
