190
EXERCISE 19
ESTABLISHING A SHORT- AND LONG-TERM COMPENSATION PACKAGE
FOR EMPLOYEES OF ODD
Due to the fact that senior management is responsible for the long-term planning of the company, these
employees should receive compensation packages based on long-term rewards. As employees move into
COMPENSATION PACKAGE ANALYSIS FORM FOR MAJOR EMPLOYEE GROUPS
Compensation
Components
Top Executives
(CEO, President,
COO, Exec VPs)
Senior
Management
(Sr. VPs, Div.
VPs)
Senior Operating
Management
(VP, Gen. Mgr,
Regional or District
Mgr.)
Mid-Level Operating
Mgt. and Mid-Level
Professionals and
Administrators
(Dept. Heads)
Lower-Level
Operating Mgt.,
Professionals
and Administrators
Higher-Paid
Nonexempt
Lower Paid
Nonexempt
Base Pay
$250,000 –$1
million +
$150,000 –
$400,000
$100,000-
$300,000
$75,000 –
$150,000
$40,000 –
$100,000
$25,000 –
$50,000
$11,000 –
$25,000
Annual Short-Term
Bonus
50-60% Target
100-200%
Maximum
40% Target
80% Maximum
35% Target
70% Maximum
10% Target
30% Maximum
Supp. Exec. Ret.
401(k) with
Defined Benefit
Employee Stock
Ownership Plan
X
X
X
X
X
X
X
Social Security
X
X
X
X
X
X
X
Sick. & Acc. Plan
X
X
X
X
X
X
X
Medical Ins.
X
X
X
X
X
X
X
Dental Ins.
X
X
X
X
X
X
X
192
COMPENSATION PACKAGE ANALYSIS FORM FOR MAJOR EMPLOYEE GROUPS – continued
Compensation
Components
Top Executives
(CEO, President,
COO, Exec VPs)
Senior
Management
(Sr. VPs, Div.
VPs)
Senior
Operating
Management
(VP, Gen. Mgr,
Regional or
District Mgr.)
Mid-Level Operating
Mgt. and Mid-Level
Professionals and
Administrators
(Dept. Heads)
Lower-Level
Operating Mgt.,
Professionals
and Administrators
Higher-Paid
Nonexempt
Lower Paid
Nonexempt
Supp. Exec. Dis
X
X
Supp. Exec. Life
X
X
Sick Leave
X
X
X
X
X
X
X
Holidays – 12
X
X
X
X
X
X
X
Vacation
2-4 weeks
X
Automobile
Club Membership
X
X
1st Class Air
X
X
Spouse Travel
X
X
Counseling