This questionnaire includes a process overview, key risks, expected key controls and questions to consider for executive bonus program.
The board of directors/executive committee/compensation committee decides on how executive bonuses will be administered. Bonuses can either be paid in cash, stock, or a combination of the two. Bonus amounts will either be decided outright with a fixed amount or a variable amount will be paid based on a bonus program. Bonus programs should be significant enough to motivate the executives and still tie to the accomplishment of the company's objectives.