Compensation is a very important issue as it represents the material, moral and social returns obtained by an employee for expending her labour in an organization. Compensation is a central aspect of the employment relationship as it directly decides what employees receive from the organization. Compensation may have different tangible and intangible components which are determined by numerous factors. Executive perceptions of these determinants are important indicators of how they experience the phenomena of compensation. An iterative - interpretative review of literature shows that there are multiple factors that affect the processes of compensation design, and employees desire to be heard in each of these processes.