The
ability to assess competitive executive practices among comparable
competing organizations is available to all CPAs thanks to
the Internet and SEC reporting. The proxy reporting of executive pay,
along with 10-K and other materials, are available to all professionals
within seconds. Determining how much one should pay top-level management
requires more than a judgment regarding direct pay (salary and bonus).
In
privately held firms today, long-term incentives and deferred
compensation plans oftentimes accumulate more value than does direct
pay. These plans often exist to match the equity compensation rewards
earned by counterparts in publicly traded corporations. Matching the
values of these plans to the rewards earned via stock options is one of
the key skills called upon by the CPA involved in executive compensation
planning and design. Moreover, besides the audit and accounting issues,
the CPA today acts as a consultant to many clients. Oftentimes a CPA is asked his or her thoughts regarding
competitive practices. This course introduces the Internet resources that exist today to quickly assess competitive executive
practices, with a focus on assessing Top
Management's pay among comparable companies.
