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Free «Corinthian» Essay Sample

Corinthian is among the leading post-secondary companies in North America. The Corinthian company is heavily focused on delivering value to students in tertiary colleges and universities. Its main concentration is in serving students, the Corinthian employees and the shareholders. The post secondary industry has faced numerous challenges over time due to regulatory and economic environment. In all the three years, the Corinthian compensation program was aimed at retaining the top talents and encourages value creation for both investors and students.

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The U.S. Department of Education regulations regarding compensation for employees engaged in certain enrollment activities and regulations in regard to gainful employment. This resulted in substantial industry disruption. Despite these challenges, the Company made progress on several fronts and implemented new programs and procedures in response to changing regulations. Managing Corinthian's business during this time of change requires a team of talented and experienced executives.

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The Company’s executive compensation programs are determined and approved by the Compensation Committee. As contemplated by its Charter, the Compensation Committee annually evaluates the Chief Executive Officer’s compensation in light of corporate performance and the competitive labor market environment in which the Company competes for executive talent, and bases the Chief Executive Officer’s compensation, including salary, bonus, grants of equity compensation, perquisites and severance arrangements, upon such evaluations.

 
 
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The Compensation Committee annually reviews and approves the compensation structure for the Company’s other executive officers including the Named Executive Officers by assessing the Company’s performance and the competitive labor market. It also sets the annual compensation, salary, bonus and equity compensation grants for the executive officers. None of the Named Executive Officers are members of the Compensation Committee or otherwise had any role in making decisions regarding the compensation of other Named Executive Officers, although the Compensation Committee does consider the recommendation of the Executive Chairman of the Board in setting the compensation level for the Chief Executive Officer, and considers the recommendation of the Chief Executive Officer in setting the compensation levels for other executive officers.

Under its Charter, the Compensation Committee has the authority to hire independent consultants to advise it on executive compensation matters.

 During fiscal 2009 and the first half of fiscal 2010, the Compensation Committee retained one independent consultant. It was given the responsibility of advising and designing the compensation levels for the fiscal 2010 program. This has seen the company grow in its stock levels for the three years compared.

   

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