Assume that you are the Chairman of the Board of Director for a company. You hav
ID: 2752041 • Letter: A
Question
Assume that you are the Chairman of the Board of Director for a company. You have to hire a new CEO for your company that manufactures domestic appliances such as washers, dryers, microwave ovens, cooking ranges, and refrigerators. You need to decide on the pay package for the CEOs. Your company has had some problems in retaining CEOs and many top managers as competitors have been grabbing your key executives. Discuss how you would go about deciding on the compensation package for the CEO. That is, what approach would you take to decide on the base salary, pay policy for the CEO, mix of various incentives, etc.
Explanation / Answer
In a competitive market where the top managers and and CEOs are being grabbed by the competitiors, the approach of retaining the top managers and and CEOs must be taken. the following points are to be considered for deciding the compensation package of the CEO:
i. Industry Rates
ii. Profits and financial health of the organisation
iii. Perks and incentives to be increased.
iv. Facilities to be provided.
v. Retirement benefits.
vi. Reward for materializing opportunities.
vii. Healthy Team