Small Business Glossary and Definitions

Execution compensation is the complete compensation package provide to a company executive in the form of salary, bonuses, stock options, and other non-financial benefits. Non-financial benefits include shares of company stock, call options for company stock, any perquisites related to the position, and all other non-wage benefits typically provided to employees within the company.

Executive compensation is typically decided by a company board of directors, company shareholders, or an executive management team. For public companies, SEC regulations require clear and understandable disclosure of executive compensation for all high-ranking executives as well as the policies and practices employed to determine such compensation. This information must be filed annually with the SEC.