Chief executive officer compensation can be a material amount and is often scrutinized by regulators, analysts, competitors, and investors. For CEOs of publicly traded companies, compensation can consist of salary, bonus, stock option grants, or other stock awards that can be restricted in terms of how long the officers and directors are required to hold the stock. Publicly traded companies are required by the Securities and Exchange Commission to provide disclosures about the components of executive compensation in the companys annual proxy statement.

Provide at least one audit procedure the auditor would perform to test the occurrence objective related to the awarding of the Chairman and CEOs stock awards and stock option/stock appreciation rights (SAR).