By using cash from other segments of the business

By using its high credit rating from prior years to receive a line of credit until the strategy begins to work

By selling its products and services at a loss until revenue increases and slowly raising prices until it begins to break even

By identifying and duplicating the strategy used by its main competitor.

Compensation that is given in the form of perquisites such as a company car, fitness membership, paid training, etc.

Compensation that is nondiscretionary and does not vary according to performance or results

Compensation that is contingent on discretion, performance or results

Compensation that is determined by the organization's pay structure   

Compensation

Benefits

Career opportunities

Recognition    

The compensation committee’s interpretation of how employees can best meet business objectives

Guidelines that determine the administration of compensation programs

Statement of what the organization believes about how people should be paid

Principles that guide the design of compensation programs

They include incentives that are paid out at certain times of the year

They identify the actual compensation paid to each employee

They may overlap with minimums and maximums falling within adjoining grades

They represent the difference between the midpoint and the maximum of a given salary grade   

What direction will we take?

How do we work?

Why are we in business?

How will we achieve our objectives?

Because the internal and external environments are constantly changing

Because the best interests of the organization take priority, which can lead to difficult decisions and implementation issues

Because they are emotional issues and stakeholders have many vested interests

Because strong business executive is required for all compensation decisions