Assignment 1 BUS 409 - Assignment 1 Compensation Management...

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Assignment 1: Compensation ManagementAssignment 1: Compensation PracticeBUS 409 (Compensation Management)
Assignment 1: Compensation ManagementCompensation Strategy is the plan or plans set by the employer to reward the employees based on their position and the type of work among other company specific factors. It goes from direct to indirect compensations. Direct compensation is monetary reward for the work completed while indirect is the benefits that come from the company as for example health and insurance. This varies by company depending on its culture, activity, and philosophy. I chose to research about a great company by the name of Apple Inc. My main focus of research was the compensation strategies and practices, best practices applied, compensation related challenges, an analysis on how compensation is distributed and the positive and negative impacts on shareholders, how unions, labor laws, and market factors have an impact on compensation practice and the bases of pay within this great company.Apple Inc., formerly Apple Computer, Inc., is an multinational corporation that creates consumer electronics, personal computers, computer software, and commercial servers. Apple’s main products are the iPhone, iPad, iPod, and Mac computer line. The founders Steve Jobs, and Steve Wozniak created Apple Computer on April 1, 1976 and was incorporated on January 3,1977, in Cupertino, California. Apple offers digital content and applications through the Mac App Store for Mac applications, Appstore for iphone and ipads applications, iBookstore for electronic books and iTunes Store for music along with games and much more.
Assignment 1: Compensation ManagementThe board of directors forms a committee called the Compensation Committee. It is made up of at least three members on the board who are independent in compliance with applicable regulations which encompasses regulations of the NASDAQ Stock Market and rules of the Securities and Exchange Commission. The members are prohibited from participation with any member of the compensation committee of another company. The committee establishes and modifies compensation and incentive plans and programs, reviews and approves awards under compensation and incentive plans and acts as administering committee for equity compensation. It’s important to note that the majority of the employees at apple are the retailers. Apple does not declare its compensation strategies to the public, but reports and words by employees indicate their compensation strategies. Apple has deemed to underpay its retail employees compared the revenue they generate.

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