Executive compensation refers to the total dollar cost provided to the top executives of a company as compensation for their services. It is different in structure and amount compared to the compensation provided to the lower-level employees and other departments. Executive compensation has grown exponentially over the years, leading to some controversy about its demotivational effect on lower-level employees. Most companies have accepted this and have adopted ways to keep all these crucial aspects in perspective while providing compensation packages to their executives to maintain employee satisfaction and motivation.

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