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The Board of Directors needs to govern executive pay to ensure performance and compensation are fairly matched and that market trends are not the basis for decisions.
METHODS
The compensation of many executives encompasses a combination of a base salary, bonuses, long-term incentives, benefits, and perquisites, all of which the Board of Directors determines. The size of the company (measured by revenue) is also another factor in the formation of an executive pay structure.
According to Forbes Magazine, the highest paid CEO in North America is currently Mark Reuben, the CEO of Colgate-Palmolive, taking in approximately $148 million last year...
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