Is executive compensation too high today? What metrics should be used to determine C-level pay, beyond financial performance?
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Senior Data Scientist in Miscellaneous2 months ago
I link executive compensation to these factors:1.) Total annual budget of the business and
2.) Total number of employees being responsible for
3.) Sustainable competitive strength
The compensation to me is supposed to be correlated to at least the first two major input factors. Otherwise loyality and responsibility vanishes.
This also means, bonus payments need to consider these factors.
CFO2 months ago
One aspect of executive compensation that I believe should be considered is benchmarking. Look at what other similar organization (approx. same revenue and number of employees) pay in same geographical area.
The same is true of executives. On one hand, the pay seems extravagant but there is high demand and low supply for people with the right experience so the market will pay those rates.
As for metrics to determine pay, I'd look at employee and customer satisfaction as leading indicators of long term durable financial success.