Ensuring the consistency in the membership of a company's executive team is an important goal in Executive Compensation. The maximization of Executive Retention is an important driver of long-term company success because it allows a company to effectively implement and carry out business strategies designed to develop over the long-term. Retention is of particular importance for executives and upper level management, who have a significant impact on company strategy, decision-making, and value creation.

Fundamental to executive retention in executive compensation is the use of vesting schedules, which work in conjunction with the concept of contingent pay to maximize the retention and incentive value of executive pay.