COMPENSATION

OBJECTIVES

1. Discuss whether or not top executives are paid too much.
2. Describe the various forms of compensation.
3. Explain the concept of equity in financial compensation.
4. Identify the determinants of financial compensation.
5. Describe the organization as a determinant of financial compensation.
6. Describe factors that should be considered when the labor market is a determinant of financial compensation.
7. Explain how the job is a determinant of financial compensation.
8. Describe job pricing.
9. Identify factors related to the employee that are essential in determining financial compensation.
10. Explain compensation for special groups.
11. Explain how executive compensation is determined and the types of executive compensation.

Compensation: An Overview

1. Compensation - Total of all rewards provided employees in return for services
2. Direct financial compensation - Pay received in the form of wages, salaries, bonuses, and commissions
3. Indirect financial compensation - All financial rewards not included in direct compensation
4. Nonfinancial compensation - Satisfaction a person receives from job itself or from work environment

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