General Business BUS206 Lecture 11: Module 11 - Ch. 11 Overview 3
22 Sep 2020
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Document Summary
Key base salaries of supervisors to an amount exceeding the top- paid subordinate in the unit. A trend in supervisory compensation is increased use of variable pay. Boards now include more outside directors than inside directors. Along with shift in duties, pay has moved towards pay for performance. Stock options have gained prominence in the corporate directors" package. Executives received much higher compensation than the average. A significant portion of which can be attributed to stock option gains. Social comparison executive salaries bear a consistent relative relationship to subordinates" pay. Economic approach value of ceo should correspond to some measure of organizational success. Agency theory compensation should ensure that executives have the best interests of stockholders during decision making. Salary plateaus due to knowledge obsolescence of mature professionals. Dual-career ladder shows two different ways of progressing in an organization. Bonuses: linked to company profits or personal performance; incentives linked to completion of projects on or before deadlines.
