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
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
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