Pay level includes total of base pay + performance (incentive ) pay +benefits.
Comparison is made to market Pay form same as pay mix ie. The various forms or
types of compensation
Rotman School shows 2008
Intro to Compensation
What is compensation? Pay mix is the unique blend of base pay, incentives
and indirect compensation/benefits
Compensation is significant cost to firm 60% to 80% of total operating
Design of compensation system i
Multidimensional concept of job performance - until recently, job performance meant the
performance of tasks specifically related to a job.
Definitions of job performance have broadened to include all activities and
Designing Pay Levels, Mix, Pay Structures
- External Pay Policy - how firms will position its pay (base, total cash, total
compensation) relative to the external market.
Compensation survey - system process of collecting and making judgments about
Executive compensation has been a highly debated if not controversial topic over the past few
years. Within the past 20 years, the average CEO compensation in the United States has
increased nearly six times from $3 million a year in 1992, peaking up to a
i3 iruzw. 11+ [:3
Compensation Ted Mock
Indirect Pay (Benefits)
Benefits often comprise a significant expense on top of wages and other forms of
compensation 20% to 30% of total wage cost is common for full time jobs.
Issues employees do
In 2006, Jim Balsillie, a co-CEO of Research in Motions base salary was
$561,032, his annual bonus was $0, but he took home a total of $54,709,465, with
$54,148,433 earnings from his stock option. This puts his total compensation at 1,321
times of a media