Executive Compensation

Companies need a competitive executive compensation package to attract new talent. Executive compensation packages are comprised of several elements and, now more than ever, are monitored by different agencies for integrity. The Fair Labor Standards Act of 1938 (FLSA) is the framework organizations use to correctly classify employees into two main categories, exempt and nonexempt. The goal of an executive compensation philosophy is to help an organization reward and retain its current executives but also to attract new talent. Using tools like salary surveys from reputable companies help to maintain internal and external equity in our executive compensation package. Such surveys can be used as a benchmark for compensation and benefits. Due to a number of scandals in large corporations, the Sarbanes-Oxley Act was passed in 2002. It protects any employee who reports potentially fraudulent actions by an organization that would violate regulations of the Securities and Exchange Commission (SEC). Controlled Vocabulary Terms executive compensation; Fair labor standards act; Salary surveys; Sarbanes-Oxley act; U.S. Securities and exchange commission