ILRHR 5607

Executive Compensation

Course Description

Course information provided by the Courses of Study 2024-2025.

This course will provide students with an overview of the design, structure, purpose, and "fairness" of executive compensation as seen from the perspective of all stakeholders including executives, other employees, regulators, board members, institutional shareholders, independent advisors, and the independent press. We will pay special attention to the role of ESG in setting corporate priorities as reflected in the choice of performance metrics. Students will learn the structure of all components of executive pay (including base pay, annual incentives, performance plans, and equity-based pay), understand how performance and pay levels are determined, and investigate how the various stakeholders interact in the decision-making process. The course will examine each critical decision made in the executive pay determination process to uncover why decisions are made and the leverage applied by each of the constituent parties. The course will also examine the linkages between executive compensation, corporate governance, and business strategy as well as the issues surrounding compliance with securities laws, tax regulations, accounting standards, and corporate governance. Lectures will be supplemented with guest speakers representing the stakeholder groups. 

When Offered Spring.

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