Executive Pay

For their regular job performance, people get their pay in accordance with employment contract.

Pay is seen as one of the most important forces in motivating the workforce.

The money a person receives, including salary, dividends, interest and rent on properties is called income. White-collar workers and professionals usually get a salary which is paid monthly, while blue-collar workers receive a weekly payment called wages.

Remuneration is a general term meaning “payment for work”. In some jobs (in sales for example), the employee receives a commission, which is a percentage of the amount he or she has sold. A fee is money paid for the professional services of people such as lawyers or consultants.

Benefits add to the value of job. Apart from salary, an executive’s compensation package can include bonuses and fringe benefits or perks. Many companies operate a bonus system for white-collar and blue-collar workers. Bonuses (extra payments) are usually paid against certain work done.

Fringe benefits or perks are extras received by an employee in addition to wages or salary. In managerial position these are usually generous, and are negotiated when a job offer is being made.

A benefits package may include: a company pension scheme, private medical insurance, company car, share options. A company pension scheme is a private pension plan which the employer contributes to. Share options give the employee the chance to buy shares in the company at an advantageous price.

There is also a compensation package for an executive leaving a company. It is also known as a golden goodbye, golden handshake or golden parachute.

Exercises in Word Study

Ex.1. Form nouns from the following verbs:

pay, remunerate, mean, employ, serve, consult, add, negotiate, insure, contribute, compensate.

Ex.2. Give the English for:

дивіденди, процентний прибуток, дохід від нерухомого майна, на робочому місці, службовець, річний оклад, робітник, заробітна плата робітників і службовців, комісійні, гонорар, професійні послуги, юрист, консультант, значні додаткові пільги, пакет пільг, медична страховка, купувати акції за вигідною ціною, опціон на акції, премія, програма пенсійного забезпечення.