Certified Executive Compensation Professional™ l CECP™
Body of Knowledge
Candidates preparing for the CECP examination should review the Body of Knowledge (BOK). The BOK represents the complete set of knowledge and skills required for professionals working in the executive compensation field. Set as the industry standard, the BOK was identified by WorldatWork Society via a formal practice analysis completed by hundreds of practitioners. The CECP examination covers all topic areas addressed in the Body of Knowledge.
The Body of Knowledge is comprised of four main knowledge domains consisting of 85 total tasks representing common skills, knowledge and abilities of the executive compensation professional. You should review the BOK while performing a self-assessment of your individual strengths and weaknesses of the subject matter to be tested. You should review all topic areas with deeper concentration on those in which you have identified as areas of weakness.
Strategic Management of Executive Compensation
Understand the mission, vision and business strategy of the organization
Ensure alignment of executive compensation with business strategy
Develop the executive compensation strategy
Identify objectives for executive compensation plans
Understand the organizational culture
Understand the governance structure of the organization
Recognize internal and external influences on executive compensation
Identify shareholder interests and concerns
Track industry trends and practices
Develop a strong working relationship with the compensation committee of the Board of Directors
WorldatWork Recommended Study List
As a competency-based testing model, there is no single preparation resources that covers all the content covered in the exam. However, WorldatWork offers numerous executive compensation educational offerings and resources that will help you prepare for the exam. view list
Determine the best short-term incentive (STI) approach
Determine the best long-term incentive (LTI) approach
Build market-based recommendations for base pay
Build market-based recommendations for short-term incentives
Build market-based recommendations for long-term incentives
Build market-based recommendations for total executive compensation
Make recommendations for executive bonus programs
Make recommendations for executive benefits
Make recommendations for executive perquisites
Establish performance measures for all plan components
Design/develop stock ownership guidelines
Assess internal equity of existing programs and proposed designs
Assist in assuring the legal compliance of all plan designs
Work with internal and external stakeholders on director compensation programs
Consult with outside experts on executive compensation plan design
Understand all executive reward elements
Understand employment contracts and agreements
Understand severance and change-in-control agreements
Understand financial statements
Understand tax and accounting principles for executive compensation
Make effective and succinct presentations on executive compensation proposals and trends
Obtain appropriate plan approvals
WorldatWork Recommended Study List
As a competency-based testing model, there is no single preparation resources that covers all the content covered in the exam. However, WorldatWork offers numerous executive compensation educational offerings and resources that will help you prepare for the exam. view list
Administer short-term incentive programs for executives
Administer long-term incentive programs for executives
Administer benefits for executives
Administer supplemental benefits for executives
Administer deferred compensation programs for executives
Administer perquisites for executives
Provide information and counseling to executives on benefits and perquisites
Analyze pay for internal executive staffing moves
Analyze pay for external executive new hires
Interact with/support the compensation committee of the Board of Directors on plan administration
Provide analytical tools (and education) for use by the compensation committee to assess change in executive compensation programs (e.g., tally sheets, etc.)
Interact with/support other committees of the Board of Directors
Develop all executive rewards-related materials and reports for director meetings as required
Work with executive compensation consultants
Manage service provider relationship with stock transfer agent
Manage service provider relationship with stock plan administrator
Manage service provider relationships with other executive rewards providers
Coordinate with Finance to provide data needed for equity calculations
Collaborate with Accounting
Collaborate with Legal
Collaborate with Investor Relations
Manage the roll-up of performance and financial results to lead the official review and determination process on final reward payouts
Communicate and interact with senior executives
Communicate with executives regarding the specifics of their individual total rewards packages
Administer executive compensation programs in accordance with all relevant accounting and tax requirements
Assist in the completion of all proxy disclosure requirements (Compensation Discussion and Analysis [CD&A], tabular disclosures, other)
Prepare documents as required for shareholder meetings
Conduct Securities and Exchange Commission (SEC) research
WorldatWork Recommended Study List
As a competency-based testing model, there is no single preparation resources that covers all the content covered in the exam. However, WorldatWork offers numerous executive compensation educational offerings and resources that will help you prepare for the exam. view list
Use statistical tools and processes to evaluate plan performance
Analyze the success of various executive compensation plan designs
Obtain qualitative and quantitative data on plan performance
Evaluate executive compensation plan performance against objectives
Evaluate the performance of executive compensation service providers
Evaluate internal equity and external competitiveness of executive compensation programs
Assess legal compliance
Identify and document unintended outcomes of executive compensation plans
Identify and implement required enhancements to executive compensation plans
WorldatWork Recommended Study List
As a competency-based testing model, there is no single preparation resources that covers all the content covered in the exam. However, WorldatWork offers numerous executive compensation educational offerings and resources that will help you prepare for the exam. view list
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