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Executive Compensation
On a relative scale, no single topic has earned more attention than that of the pay packages offered to executives. Pay packages are being scrutinized in publicly held and private companies as well as the not-for-profit sector. The focus of shareholders, Federal and state government entities and the media has been on compensation plans that provide significant gains to executives in spite of sub-standard performance. The same is true for not-for-profit organizations where relatively large pay packages have been offered to executives from organizations that have not-for-profit or tax-deferred status.
As a result, there is tremendous responsibility vested on those that research, review and approve pay packages for executives. Pay packages that are today considered necessary to attract, retain and motivate the highest caliber employee seem extraordinary relative to the broad-based employee population. These pay packages are typically justified in the context of the current market. However, they need to |