MANA 443 Lecture Notes - Lecture 8: Compound Interest, Decimal Mark, Career Development
13 Dec 2018
School
Department
Course
Professor
Document Summary
Salary: 50,900 / 52,000 = 98% of market (-2%) if you fall further than 10%, problem. Midpoint: 52,800 / 53,600 = 99% of market (-1%) Target incentive: 8% vs 11% (ie 8%/11%) = 73% of market (-27%) Target vs. actual: 8% vs (6,300 / 52,000) = 12% = 67% of market (-33%) Total actual opportunity vs. total compensation: (50,900 + 8%) = 54,972 / 58,300 = 94% of market (-6%) Salary and midpoint appear to be right on market (98% of market): we consider anything within +/- 10% to be competitive. It is very common to have a number of compensation surveys on hand, each with a different. Companies doing compensation analyses generally update the survey data to a current. All compensation surveys have an as of date. This chart assumes continuous compounding of salary increases. Sometimes, it is simply easier to take 7/12 of 4% and use that instead. The answer is very close, and much easier to compute.
