regarding executive compensation and governance the goal of executive compensation is to align executive and owner goals.
Modern pay structures may often be broken down into four categories: short-term vs long-term, cash against equity, individual versus collective, and fixed versus variable. The strategic goals of the company, its capacity to draw and keep personnel, ownership structure, culture, corporate governance, and cash flow are all important deciding considerations. Companies in the Russell 3000 Index place a strong emphasis on doing just that—aligning compensation with business success, as stakeholders demand. However, businesses may need to take into consideration additional criteria, such as seniority, especially outside of the United States. The basic wage, which is predetermined and paid in cash, as well as short-term and long-term incentives make up total direct compensation.
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