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The Complete Guide to Executive Compensation 3/E, 3rd Edition by Bruce Ellig

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Chapter 4The Stakeholders

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Having reviewed performance measurements and identified the five compensation elements, we will next examine the stakeholders in executive compensation. They are not only those directly concerned, but also those who affect, to varying degrees, the design of executive compensation—both the “how” and “how much,” as shown in Figure 4.1.

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Figure 4.1. Executive Compensation Stakeholder and Rulemaker

The stakeholders are the executives themselves, other employees, the shareholders (directly and through their representatives on ...

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