It is extremely important to the success of a closely-held company to have a well thought out compensation plan for key non-owner executives and managers. Almost all successful publicly-traded companies have short and long-term executive compensation plans. Just because the owners of a closely-held company may not want to reward their non-owner executives with stock doesn’t mean that they can’t have an executive compensation plan that is just as meaningful as those found in the most successful publicly-traded companies. Our presentation below describes the elements of compensation for the non-owner executive, including:
- Base pay,
- Annual incentives,
- Long-term incentives, and
- Benefits,