1. In 2008, Pratt estimated that executives received more than 360 times the pay of the average worker (as cited in Milkovich, Newman, & Gerhart, 2011). What are the components of executive compensation? Why are there so many societal concerns about executive pay today?
2. When you think about executive pay, what components of executive pay are most aligned with shareholder goals? How do they work?
3. Compensation programs are managed to ensure that the total compensation is aligned with organizational goals and strategies. There are a number of employees with the correct skill sets, and they are paid at the appropriate level and within a budget that is affordable to the organization. How can labor costs be managed?
4. The compensation manager generally has little if anything to do with recruitment and selection. That’s not part of the job. What is the role of the compensation manager in assuring a capable workforce for the company?
5. An employer is obligated to pay a non-exempt employee for all time worked, even when the employer may not have directed or authorized that the employee worked during breaks, lunch periods, or before or after their regularly scheduled work hours. The language used in the FLSA is that the employer has “suffered and permitted” the employee to work, thus the employer is obligated to compensate the employee. What does this suggest to you that an employer needs to do to protect itself against these sorts of claims?
6. One of HR’s responsibilities is to be an “employee advocate” which sometimes may place them in a position of challenging management decisions that may place employees in some jeopardy such as in the Consolidated Electric scenario presented in this thread. Some may consider this putting HR in a precarious position with organizational leaders. How would you react if put in such a position when you are contradicting a decision made by those in superior position than yours?
1. Components of executive salary are
Base Salary: Base salaries are generally competitive in the market to
attract the best executives towards the organization and retain them