Compensation system

1. To what extent (if at all) do you feel CEOs are overpaid? Explain

2. What are some of the advantages and the disadvantages of a merit-based compensation system?

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3. Is pay compression a potential problem in terms of employee morale? Why?

1. Why are more firms not using the Lincoln Electric compensation type plan?

2. What gainsharing system do you believe is the most effective? Why?

3. Should stock option plans be used as a part of executive compensation packages? Why or why not?

1. How can a person’s acquisition of knowledge be determined so that his or her pay can be changed? Explain.

2. Explain the meaning and intent of a feedback pay system.

3. Why do some organizations use a variable pay system? Explain.

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