Compensation; Compensation for Special Groups ( Chapter 14)

Professionals

An employee who has specialized training of a scientific or intellectual nature and whose major duties do not entail the supervision of people

Base Salary

The basic cash compensation that employers pay for work performed. Tends to reflect the value of work itself and ignore differences in individual contributions

Maturity Curves

A plot of empirical relationship between current pay and years since a professional has last received a degree (YSLD), thus allowing organizations to determine a competitive wage level for specific professional employees with varying levels of experience

Agency Theory

A theory of motivation that depicts exchange relationships in terms of two parties: agents and principals. As applied to executive agency theory would place part of executive's pay at risk to motivate the executive ( agent) to act in the best interest of shareholders (principals) rather than in the executive's own self interests

Sales Compensation

Any form of compensation paid to sales representatives. Sales compensation formulas usually attempt to establish direct incentives for sales outcomes

Tally Sheet

Gives a comprehensive view on the true value of executive compensation. Add up the value of base salary, annual incentives, long-term incentives, benefits and perks

Dual Career Ladder

Presence of two different ways to progress in an organization, each reflecting different types of contribution to the organization's mission

Base Pay

The basic cash compensation that employers pay for work performed. Tends to reflect the value of work itself and ignore differences in individual contributions

Base Wages

The basic cash compensation that employers pay for work performed. Tends to reflect the value of work itself and ignore differences in individual contributions