Executive Pay is when the executives of a company are paid separately from the regular workers in an organization for privacy purposes. Typically, top management does not want their salaries and bonuses to become common knowledge. To keep that information private, they will contract with a payroll service to handle this and the information is therefore kept outside the company’s internal systems and away from prying eyes.

This tactic isn’t just for CEO’s of corporations, there are many situations in small companies where the regular payroll is done internally by the secretary but the owner wants to keep the top earners’ pay from getting out and causing disaffection in the ranks. So, they hire a payroll service like ours to keep these compensation packages confidential.