Final answer:
Excessive compensation is considered in the context of total compensation including pay, insurance, and retirement benefits, adjusted for an employee's value to an organization, and further influenced by factors such as inequality and labor market policies.
Step-by-step explanation:
Excessive compensation according to the commissioner in relation to benefits provided may be characterized by the imbalance between the total compensation and the value or performance an employee contributes to an organization.
The components of total compensation include supplemental pay, insurance benefits, retirement and savings plans which may be in forms such as Defined Benefit or Defined Contribution plans, as well as legally required benefits such as employer payments to Social Security, Medicare, unemployment and worker’s compensation insurance.
Factors influencing the degree of compensation include the employee's experience, education, skill, talent, and potentially their membership in a labor union.
Issues like economic inequality and labor market discrimination are important considerations in discussions about compensation.
It is also noted that the duration and long-term value of the benefits also play a critical role in determining whether compensation could be deemed excessive, as well as how incentives for employees are structured.