206
EXERCISE 26
USING MATURITY CURVES TO MAKE PAY DECISIONS
Exhibit 26-2 PROPOSED SALARLY ADJUSTMENTS WORKSHEET (Completed)
EMPLOYEE NAME
MOST RECENT
PERFORMANCE
RATING
YEARS
SINCE BS
DEGREE
2004
SALARY
PROPOSED
2005
SALARY
1. Axtell, Josephine
4
10
$66,150
$70,119
2. Coleman, George
3
5
$63,220
$63,220
The following two spreadsheet tables were used to compute the responses to Exercise 26
2004
proposed
max pay
$ value
of
recom-
mended
2005
yrs
pay
raise%
constraint
max . pay
raise
raise$
pay
Axtell
10
$66,150
6
max 75th
$80,368
0.05
$ 3,969
$70,119
Coleman
5
$63,220
4
max 50th
$62,052
0.00
$ –
$63,220
Faulkner
11
$67,200
2
max 25th
$64,747
0.00
$ –
$67,200
Gomez
10
$73,400
4
max50th
$70,812
0.00
$ –
$73,400
Oxfelt
1
$42,325
2
max 25th
$49,838
0.02
$ 847
$43,172
Sturgeon
17
$67,835
4
max 50th
$80,657
0.04
$ 2,713
$70,548
$ 7,529
proposed
actual
raise %
raise%
raise%
raise$
of total
raises
Axtell
6
6
$ 3,969
0.53
Coleman
4
0
$ –
Faulkner
2
0
Gomez
4
0
$ –
Oxfelt
2
2
0.11
Sturgeon
4
4
$ 2,713
0.36
1.00
Discussion of the raises:
3. Faulkner, Larry
2
11
$67,200
$67,200
$73,400
$73,400
$42,325
$43,172
6. Sturgeon, Hall
3
17
$67,835
$70,548
1. 6% raise = $3,969 + $66,150 = $70,119 within the 75th percentile of $80,368.
2. Current salary of $63,220 already exceeds the $62,052 median.
Recommend no increase.
4. Current salary of $73,400 already exceeds the median of $70,812.
Recommend no increase.