Page 15 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Chapter 1

Executive Compensation

Framework

A s the title of this book suggests, this is a handbook or reference tool on execu-
tive compensation. You can read it cover to cover, chapter by chapter, or access
it selectively for definitions and examples of various programs. It is intended
to be useful to several different audiences: executives, approvers of executive
compensation programs, designers, and administrators of executive pay delivery systems,
and those who write and report on executive pay. Each group will understandably have a
different degree of interest as well as different perspectives.
Executives, as the recipients of pay plans, will find this book useful both in describing
what they don’t have and for reviewing plans in which they participate. Approvers of execu-
tive pay plans will not only find valuable definitions and descriptions of various type plans,
but also useful insight as to the conditions under which they might be used. Thus, this book
offers independent input to that provided by the recommenders of the pay plan. Hopefully,
designers and administrators will find details and examples that will trigger their own creativi-
ty; for those who report about executive pay plans, this book will not only provide useful
background, but also help form a better understanding of the topic.
Having defined how various readers will find the book useful, it is important to indicate
what the book does not purport to do. Specifically, you should not rely on accounting, tax,
Securities and Exchange Commission (SEC), or other potentially legally binding statements
in this book. Seek appropriate professional counsel for such guidance. The statements made
in this book are offered as illustrations to help readers understand principles and practices.
You should consult with appropriate counsel before making any binding decisions.
This chapter will define executive, compensation, and the organization in which the executive
earns his or her compensation.

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Copyright © 2007 by Bruce R. Ellig. Click here for terms of use.