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Unformatted text preview: I wouldnt consider the compensation made to Kim to be reasonable. From what is presented in the case, I seen like Kim is taking advantage of the fact that he is the sole shareholder and CEO of the business. His two immediate staff are being paid far lesser than what is taking home including bonus. To analysis the case base upon the Elliotts, Inc V Comm five factors to show how Kims compensation can responsible, Employees role in the company this is where pay for performance comes in. Does Kim function and responsibility justifies his compensation? The case did not state. But what I will suggest here is that in order for Kim compensation to reasonable, he must accept more responsibilities. External comparisons in comparing his salary to other CEOs in the same industry of $500,000, Kim makes more. My understanding is that he been innovative to growing his company at 7%. I securing this 7% annually, which is huge, Kim has to undertake multiple role.company at 7%....
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- Summer '09
- Financial Accounting