CMS CEBS This is a required course for the CMS designation and can also be used as an elective course for the CEBS curriculum.

This course is under review. If you have already purchased study materials, you will need to complete your exam in 2017.  

This course presents an overview of executive compensation issues and practices. The course begins with an explanation of various organizational approaches in determining which employees comprise the executive group. The course proceeds to describe the various components of executive compensation including direct pay, employee benefits, perquisites, short-term incentives, and long-term incentives. Design considerations in using these alternate forms of pay and the business objectives they seek to achieve are discussed. The crucial design element of balancing current versus deferred incentives is addressed along with performance measurements and standards used in determining compensation awards. Tax and financial considerations are examined and put into context when applied to certain pay techniques such as the use of nonqualified plans and stock option grants. The role of the board of directors in establishing and monitoring executive compensation and the increased public scrutiny and accountability for excessive pay awards are discussed.

Testing Appointments: Please note the course number to use to for making appointments at Prometric for CMS 3 is Course 31.

Study Materials

  • Learning Guide + Practice Exam on CD (PC only), $195.00
  • The Complete Guide to Executive Compensation (3rd Edition), Bruce R. Ellig, McGraw-Hill, 2014, $150.00.  ISBN 978-0-07-180631-2.

May meet CE Credit Requirements

Click here for ACE Credit Recommendation.

Assignment Topics

  1. Executive Compensation Framework
  2. Performance Measurements and Deferred Compensation
  3. Salary
  4. Employee Benefits and Perquisites--Part I
  5. Employee Benefits and Perquisites--Part II
  6. Employee Benefits and Perquisites--Part III
  7. Short-Term Incentives
  8. Long-Term Incentives--Part I
  9. Long-Term Incentives--Part II
  10. Long-Term Incentives--Part III
  11. Design and Communication Considerations
  12. The Board of Directors