Another day, another headline about executive compensation. This time it’s DaimlerChrysler AG’s ex-CEO Juergen Schrempp who, according to reports, will make $134 million from the sale of Chrysler Group to Cerberus Capital Management–this, after some critics argue that he was at the helm of the Chrysler deal from start to finish that ultimately lost $12.6 billion for investors.

With numbers like these, no matter how you feel about a particular executive or the job they have done, it’s no wonder that executive compensation is a hot button in corporate America. This is due to the fact that, with some notable exceptions, most CEOs are paid enormous sums of money. Most, however, don’t take the time to lay out the groundwork–with employees, stockholders, analysts, and the public–that they deserve that large salary.

Does that mean that all CEOs should make a $1 salary, or have their compensation awarded in stock to ‘prove’ their long-term commitment to the business? Certainly not. What it does mean, however, is that CEOs would be well-advised to detail their strategy and plan–to provide measurable metrics by which their performance can (and certainly will) be graded–prior to any question about their compensation being raised.

Think back to college; the syllabus you received on the first day of Business101 showed you that the three exams each counted as 25% of your grade, with your class project accounting for the remaining 25%. You knew the metrics by which you would be graded before you received the grade. CEOs who want to avoid tedious situations should put that Business101 lesson into practice shortly after accepting the job at the helm.

So what are appropriate metrics? For every company, they’ll be different. If you’re Ford, the measurement may be that you stop the company from losing any more money and solidify its position in the American market. For a retail business, it may be that you’ll open 50 new stores. For another public company, it may be to increase dividends by 25 percent.

No matter which metrics you choose, make sure that they are measurable–and that anyone measuring will be able to arrive at the same answer. You also have to make sure they’re publicized, so that stakeholders understand how seriously you’re taking the commitment to their business–issue a press release, post it to your web site, create a section for it in your annual report. Use this accountability and transparency to your advantage.

What happens if you didn’t lay the groundwork (can you say Bob Nardelli?) and stakeholders are starting to get a little hot under the collar. There are things that you need to do in that situation–things that you should do to diffuse some of the pressure–and that will be the fascinating subject for a blog post some time in the future.