Page 31 - Appreciating Organization's Biggest Assets

December 2021, Pages 381-404) Whereas perquisites are executive
have stated how the 2008-09 crisis employees that are provided to
in Portugal affected executive pay employees at an executive level or
and how it affected organizations. on previous performance in some
They observed that the women cases. Perquisites include club
executives were paid more based memberships, first class air travel,
on their performance. Many corporate aircraft, employment
women employees were promoted contracts, legal and financial
to executive positions post crisis in services, severance agreements,
Portugal. This resulted in a decrease change in control agreements,
in the gender-pay gap. This resulted special deferred compensation and
in equal compensation paid to many more.
both the genders in executive C S Venkata Ratnam, George
positions post crisis. Bruce R. Ellig, T Milkovich, Jerry M Newman,
(The complete guide to executive (Compensation- McGraw Hill
Compensation- McGraw Hill Edu. Pvt. Ltd. 2009) and Richard
Edu. Pvt. Ltd. 2011) in this book I. Henderson, (Compensation
has explained in detail the pay management in a knowledge-based
of executive compensation. This world, Pearson Education, Inc.
information is useful to understand 2003) in their book explain in detail
the base of the compensation how the compensation plans work.
plans and its benefits for the All the benefits and pay included in
employee and for the organization. executive compensation have also
The 5 basic components of an been covered. These books explain
executive consist of Salary, Employ in detail the compensation strategies
Benefits and Perquisites, Short- and its effects on the economy
term incentives and Long- term and organizations. Some points
incentives. All these benefits can be to keep in mind while framing a
defined by six methods including compensation plan are:
Salary, Job grade, Key position,
Job title, Reporting relationship • Mission and vision.
and a combination of these. The • Business plan or strategy.
book gives a clear understanding
of the compensation benefits and • Life cycle, organizational
perquisites. The benefits include structure and business processes.
paid leaves, service programs, health • Workforce composition
care, and retirement coverage for all and demographics.
the employees in an organization.

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