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The compensation an executive receives when they resign depends on their contract they signed when becoming an executive, and the reason for their resignation. They are typically awarded some sort of stock bonus with the company as long as they did not leave in disgrace.

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12y ago

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What is executive compensation?

Executive Compensation is the payment that individuals receive based on a predetermined management level. The compensation may be based on both individual efforts and company wide goals that have been met. Included are performing the duties of ensuring that corporate profits are either growing or are sustainable. In other situations the compensation may be based on budgetary goals. (cutting costs without losses in service)Only members of a company's board of directors that also have company jobs receive executive compensation as described. Normal members of the board receive a nominal amount of money to be on the board. Perhaps 2 or 3 thousand per meeting, which may be 12 times a year or less.Executive compensation can be made with such things cash bonuses, stock options, or discounts on stock purchases made from the company treasury or subsidised by company purchased stock on securities markets.In certain circumstances executives receive a "sign on bonus" based the perceived value of the executive.Some executive compensation is very high becauseThe executives have a huge responsibility to a large number of shareholdersIn certain situations executive compensation has come under fire, especially in the case of companies that are losing billions of dollars and receiving Governmental Aid. This type of "compensation is rare and the outstanding case was a Federal government failure to monitor the AIG issue.


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