Executive compensationExecutive Compensation
is how top executives of business corporations
are paid. Salary is taxable
to an individual at a high individual rate. If part of that income can be converted to capital gain
, for example by granting stock options
to executives, a more advantageous tax treatment may be obtained.
Other components of an executive compensation package may include such perks as generous retirement plans, a chauffered limosine, an executive jet, interest free loans for the purchase of housing, etc.