HR Glossary

Executive Compensation

Executive compensation, also known as executive pay, refers to remuneration packages specifically designed for business leaders, senior management and executive-level employees of a company

what-is-executive-compensation

Executive compensation definition

Executive compensation, also known as executive pay, refers to remuneration packages specifically designed for business leaders, senior management and executive-level employees of a company.

Executive compensation includes benefits such as salaries, perks, incentives, insurances etc.

Importance of executive compensation

Senior management and executive-level employees play a crucial role in the company as they’re the ones making the strategies, taking importance decisions etc. In order to keep them motivated and satisfied it’s important to set the right benefits package.

This type of compensation is negotiable between the employer and potential executive and can defy the organizational norms on compensation to regular employees.

Components of executive compensation

1. Salary

2. Short Term Incentives (STI)

3. Long Term Incentives (LTI)

4. Guaranteed Severance Package

5. Perquisites – like club memberships, private planes

6. Insurance – health insurance for self and dependents

See TalentLyft in action

Applicant Tracking, Recruitment Marketing, Sourcing and Talent CRM software are powerful alone, but unstoppable when used together!


Related content

  • Balanced scorecard is a strategic performance management tool which companies use to connect business activities to the vision and strategy of the companyBalanced scorecard definition (BSC)Balanced...

  • Bumping is a process used by many organizations during downsizing to keep the valued staff by giving employees with seniority the option of taking other positions...

  • A career summary is brief, general statement on a resume that includes overview of experience, responsibilities of a job, skills, and accomplishments. Career summary definitionA career summary...

  • Core competencies is a term which describes a particular set of strengths, knowledge and strategic advantages that make a company stand out from its competitors. Definition of...

  • Disease management refers to an information-based process in which employers maintain a healthy workforce by proactively managing health-related risks. Disease management definitionDisease management refers to an...

Explore more topics

  • Successful Recruiter

    Discover the key traits, strategies, and tools that make a recruiter successful. Learn how to build strong relationships, source top talent, and navigate the hiring process efficiently. Equip yourself with the skills and techniques to consistently find and secure the best candidates for your organization.

  • Candidate Experience

    Candidate experience is a critical factor in shaping a positive employer brand and attracting top talent. Learn how to deliver a personalized and engaging candidate experience that reflects your company's values, fosters long-term relationships with candidates, and enhances your reputation as an employer of choice. Secure the best candidates with a standout hiring process.

  • Recruitment Metrics

    If you can't measure it, you can improve it. Or something like that. Either way, tracking metrics is in the recruitment process is crucial to see what works and what doesn't. Dive in to this topic to learn all about the most important metrics to track and how they can help you optimize your hiring process.

  • Employee Management

    Employee Management: Discover the essential tools, tips, and processes to build and lead a winning team. Learn how to effectively manage performance, foster collaboration, and create a positive work environment that drives success. Implement best practices to optimize productivity and ensure your team reaches its full potential.

  • Diversity Equity and Inclusion (DEI)

    Diversity, equity, and inclusion (DEI) have become key focuses in building a thriving workplace culture—and for good reason. In our DEI Hub, we provide strategies, insights, and best practices to help HR professionals, business leaders, and change-makers champion a more inclusive and equitable workforce. Join us in fostering diversity and empowering employees by exploring a wide range of DEI topics, from inclusive hiring practices to creating a workplace where all voices are heard and valued.

  • Recruitment Marketing Strategy

    Develop an impactful recruitment marketing strategy to attract top talent. Learn how to create targeted campaigns, build a strong employer brand, and use digital channels to reach and engage potential candidates. Optimize your recruitment efforts with strategies that showcase your company culture and position you as an employer of choice.

Simple and affordable recruitment software