This is a required course for the CMS designation and can also be used as an elective course for the CEBS curriculum.

This course presents an overview of executive compensation issues and practices. The course begins with an explanation of various organizational approaches in determining which employees comprise the executive group. The course proceeds to describe the various components of executive compensation including direct pay, employee benefits, perquisites, short-term incentives, and long-term incentives. Design considerations in using these alternate forms of pay and the business objectives they seek to achieve are discussed. The crucial design element of balancing current versus deferred incentives is addressed along with performance measurements and standards used in determining compensation awards. Tax and financial considerations are examined and put into context when applied to certain pay techniques such as the use of nonqualified plans and stock option grants. The role of the board of directors in establishing and monitoring executive compensation and the increased public scrutiny and accountability for excessive pay awards are discussed.