The general roles of the board of directors are to set the company’s strategic direction, to advise and monitor top management and to otherwise protect the interests of shareholders (e.g. Styles and Taylor, 2003; Hilb, 2005). Determining executive pay is an important task in fulfilling the board’s duties (Finkelstein and Hambrick, 1996). This chapter describes institutional details of the executive pay setting process.
KeywordsExecutive Compensation Compensation Policy Option Grant Compensation Level Compensation Committee
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