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Data analysiis and literature review - Assignment Example

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A committee whose main role is determining the salaries of several executives determines most company’s executive salaries. The…
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Data analysiis and literature review
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Download file to see previous pages The research does not establish a relationship between the salaries of the executives and the years spent in the company (Curwin, 2002). The data obtained in the research clearly indicates a variance in the relationship between the salaries of the executives and the years spent in the company. In some cases, the executives have spent quite a long duration in the company but their salary falls under the average level. The time spent in the company can have use in the determination of the salaries of the executives in the case where the other economic factors about the company are kept constant. The time spent in the company is also utilized in determining a company’s executive salaries given that the executive has the relevant experience in the general operations of the company. In addition, the companies can pay their executives based on the duration spent in the company given that the company’s performance reflects on its returns (Morris, 2003).
Company’s executive’s salaries are determined based on their performance as well as the company’s performance. An executive salary is determined by the performance of the company in terms of the returns and fulfillment of its objectives. For example, an executive who have spent many years in the company and has implemented several effective policies in the departments they have been working. The executive who has been performing exemplarily in the finance department for many years can be rewarded based on their performance. On the other hand, the executives’ salaries are determined by the performance of the company based on returns and ability to reward their executives (Wright, 2000, p.600).
When an executive is imported from another company to boost the performance of failing company, they accept reduced the salary with the expectation of a salary review after the company’s performance improves. Moreover, an executive who has been working to enhance the company’s performance ...Download file to see next pagesRead More
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