Executive compensation consultants develop compensation programmes through information gathered from documents and interviews with key executives, along with an assessment of management processes and the existing compensation programmes. This information gathering can be very costly. Argues that a good deal of the data required to establish compensation programmes can be gained for the consultants by the company′s internal auditors, who are adept at research, are objective, are free from bias, and are accustomed to evaluating any business process or activity. The consultants gain by being relieved of a good deal of detail work: the company gains by substituting the lower salary rates of the internal auditors for the high fees charged by consultants for data gathering.
Managerial Auditing Journal – Emerald Publishing
Published: Sep 1, 1994
Keywords: Compensation; Directors; Executives; Incentives; Internal audit
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