The board of directors for a relatively new book publisher wants to go through a formal process to piece together an effective executive pay package. They have contacted you, the vice president of HR, to obtain some guidance on how to structure the package. What would you say to the board of directors in this situation? Do not include any benefits or perquisites in the executive compensation package. Provide stock options as the main element of long-term executive incentives. Make the base salary component of the executive compensation package around 70-80 percent of total annual compensation. Be sure to offer a generous severance package, if the executive needs to be terminated