高管薪酬状况外文文献翻译中英文.doc

外文文献翻译 (含：英文原文及中文译文) 文献出处： Yazan Damiri; The State of Executive Compensation[D]; University of Tennessee-Knoxville ; 5-2006 英文原文 The State of Executive Compensation Yazan Damiri University of Tennessee-Knoxville Companies use different methods to compensate executives. An ideal compensation package aligns executive incentives with shareholder interests to minimize agency problems. These methods often include a combination of: salary, bonus, stock options, stock grants, and pensions. Since the use of stock options has recently been a subject of great controversy, they will be discussed in greater detail since corporate scandals such as Enron and WorldCom have been linked to stock option grants (Hall-Murphy). However, the first component of compensation that will be discussed is one that the average employee can relate to-salary. Salary Salary is a fixed amount of a compensation package and does not vary in the short run (Balsam 35). However, salary can vary in the long run depending on performance. Normally, companies include clauses in compensation contracts allowing for raises that are contingent on performance and duration. Since salary is the most risk-free component of a compensation package it is very important in attracting executive talent, especially if that individual is risk-averse (Balsam 312). Bonus A large portion of companies pay their executives a bonus based on performance. A bonus is a form of compensation that is conditioned upon the performance of one or more measures. According to Balsams book, An Introduction to Executive Compensation, these measures can be implicit or explicit, objective or subjective, or financial or non-financial. Usually, the maximum bonus is expressed as a percentage of salary; as an employee moves up in the corporate ladder, the percentage of salary that can be earned as bonus usually increases (Balsam 314). It is not uncommon for a CEOs bonus to be 100% of salary. In 2005, Wall Street bonuses set a new record of $21.5