What is the publication of the remuneration of executive compensation?
At the end of the 90s. The topic was to disclose the compensation of the executive at once a significant problem, both in the financial reporting sector and in the popular press. This change was caused by an increase in the number of executives who receive record compensatory packages that seemed to be provided regardless of the performance of the company. In the United States, this change is a great shift in culture, because high compensation for managers was a point of pride for many large societies, suggesting great success.
The definition of who has to be included in the publication of the executive compensation varies according to the organization, but usually includes all at the level of Vice -president and higher. Some companies include the Board of Board and the managers of their reports. Information is usually provided in annual financial statements and can be listed with or without employees.
In the public sector, the selection criteria for executing publication are usually based on conCrete value of dollar taxable income, usually $ 100,000 in the US (USD) and higher. This method is used to accommodate a wide range of position titles, which could be quite misleading about the level of responsibility associated with the role. For example, the chairman of a small government research institute does not have the same level of liability or compensation as the president of the government hospital. However, this list may include the head of the police inspector based on a combination of basic salary and overtime.
The notes on the financial statements should provide details of the criteria to determine who is included in the EXECUTIVE COMPENSATION message and how this list was compiled. There are a number of compensatory packages that contain items that usually do not consider compensation. In the interests of justice and comparison for financial accounting standards reviews notes and financial auditors are obliged to ensure that the statement is accurate reflectionEM Real compensation.
compensatory packages for most workers are a combination of salary, benefits and minimal taxable benefits. The total value of the compensation is included in the annual tax slip and is expected to pay the income tax of persons from this value. Packages are usually much more complicated for executives.
A great example of a comprehensive publication of executive compensation includes payments in stock options that have not been reimbursed, and the use of a company car, aircraft and employees for personal requirements. This may include a nanny with a paid company for a working mother, an apartment for use after meeting at night or a paid chauffeur. These items are not usually included in the personal tax slip and receive different tax treatment.