Executive Pay and Reward

Running head: EXECUTIVE PAY AND REWARD
Executive Pay and Reward
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Executive Pay comprises of financial compensation along with the other non-financial
rewards which is received by the executive from the firm in exchange of their service to
organization. It can be said to be a mixture of the salary and the bonuses that helps in the
growth of an organization. The payment that is based on the executives has emerged to
become common in the last two decades. Transformation taking place in the developed
economies can help in aligning the interests of the management along with the shareholders
that can help the executives in performing in a better manner in an organization (De Vaan,
Elbers and DiPrete 2019). The structuring of the executive pay helps in rewarding the
company performance and it helps in aligning the executive pay with that of the shareholder
value. The executive rewards helps in rewarding the philosophy along with the aspect of the
strategy development which can play a role in augmenting the performance of an
organization. This essay throws light on the issue of the executive pay along with the reward.
It talks about the effect of the executive pay on the performance of employees of Azadea
Group. The essay discusses about how Azadea Group deals with the issue of the executive
pay and the good practices pertaining to executive pay of the company.
The employees of Azadea Group are provided with the cash compensation that helps
in providing encouragement to the people in the executive level in the organization. The
people in the executive level of the company are provided with the cash compensation that
helps in providing encouragement to the top management of the company. According to
Chizema et al. (2015), the workers of Azadea Group are provided with the option grants that
inspires the management of the organization of maximising the shareholder value. The
executives of the organization are provided with the incentive plans in the long term that
improves the performance of the employees. The people in the management of Azadea Group
are provided with the retirement packages that can help the people in the management of the
company in getting benefits after their retirement from the service. It has been argued by

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Frydman and Papanikolaou (2018), that the executive perks are provided to the people
working in Azadea Group like the private jet along with the travel reimbursements that works
to the convenience of the employees of the company.
The executives of Azadea Group are provided with the club memberships along with
the company vehicles that helps in providing encouragement to employees of organization. It
helps the employees in meeting the business objectives that helps in the successful running of
a company. According to Bank, Cheffins and Wells (2016), the good governance in an
organization plays an important role in improving the work efficiency of the employees of
organization. The people in the executive level of Azadea group can be provided with the
variable pay that can be instrumental in boosting the confidence of the employees. It can help
the executives in reaching the organizational performance goal like the specific profit level
that can help the organization in making the profits. The bonus that is paid to the executives
is on the basis of the performance outcome that plays a crucial role in improving the
performance of the employees (Alves, Couto and Francisco 2016).
The executives are provided with the stock option that helps in providing the
employees with the free company stock. The executives of Azadea Group can buy the
company stock at that of a reduced price that comes to be of use for the betterment of the
organization. The stocks becomes valuable in the event of the company improving itself
financially that can help the executives in earning great amount of the benefits. The
executives can sell the stock at a later point of time that helps the executives in earning
dividends. According to Correa and Lel (2016), the executives receive high level of the fringe
benefits like the health insurance along with the life insurance that can serve the interests of
the organization. The executives also possess the contract in relation to the large severance
packages that can act to the reputation of the employees of organization. The executives
enjoy special kinds of benefits like the car service, dining room along with the special