Compensation Ch. 14- Special Groups
reward components of professional employees
-dual-career ladders -performance based incentives -bonuses -perks based on unique needs of professional employees
sales compensation packages
-guaranteed base salary -" " + commission -" " + bonus -" " + bonus + commission -commission only -combination plan
description of long-term incentives for exec's
-incentive stock options -non qualified stock options -phantom stock plans -stock appreciation rights -restricted stock plans -performance share/unit plans
key factors in designing sales comp. plan
-nature of people who enter sales profession -organizational strategy -market maturity -competitor practices -product sold -economic environment
characteristics of special groups
-tend to be strategically important to company -positions tend to have built-in conflict that arises b.c of different factions
contingent workers
-types include a person who works: 1 through temp agency 2 on an on-call basis 3 independent contractor (these often earn more than above)
key issues in contingent workforce compensation
-view workers as pool of candidates for more permanent hiring status -champion idea of boundary less careers
components of an executive comp. package
base salary short-term incentives / bonuses long-term incentives executive benefits perquisites
scientists and engineers
classified as professionals problems with pay: -salary plateaus due to knowledge of obsolescence of mature professionals -question of equity
conflicts faced by sales staff
often go far for extended periods in the field with little supervision challenges: staying motivated, continuing to make
executives
pay is linked to company performance ways to rein in executive compensation
pop. perks offered to exec's
physicals counseling first-class air travel estate planning reserved parking legal counseling chauffeur service car phone loans at low or interest luncheon club membership
explanations for CEO compensation
social comparisons economic approach agency theory
corporate directors
stockholders blame c.d. for excessively high executive comp. -dir. are more active in decision making -approx. 2/3 of boards now include more outside directors than inside -typical director receives $55K in cash incentives & total of $150K
who are special groups?
supervisors corporate directors top management executives professional employees sales staff contingent workers
