Ceo Compensation

To study the executive compensation plans of private companies and to see how much they effect to the overall performance of the companies. A sample of minimum 50 companies would be selected belong to various sectors and then the relation between performance and compensation will be derived. Each compensation tool will be tested individually and then it will be analyzed that which affects more in the performance delivered by the executive or high ranking officers of the company. Both qualitative and quantitative techniques will be used to gather data. The company executives are responsible for achieving goals so the importance of the study is to design an efficient and effective compensation plan for these company executives which increase their performance and motivate them to generate revenue. The purpose of the study is to analyze those factors in the executive compensation that help to motivate the executives to meet the company goals. Executives are not paid as a normal employee but stock options, restricted stock, tax issues and other long term incentives are the part of executive compensation. Which compensation tool effect most in attaining the company objectives is the key question of the study. There is a need of such compensation package for executives which raise their performance and then ultimately become the reason of organization success.Compensation has a major role into the performance of any employee. Compensation does not only deal with money but there many factors which need to motivate an employee to achieve the company goals and targets. Executives and the higher ranking officers are wholly responsible for attaining company goals. Their compensation is designed in such a way that directly deals with the performance of company. Basic salary, short term and long term incentives, bonus and other employee benefits are basic tools of the compensation.