Compensation Assignment 2022

Running head: COMPENSATION
COMPENSATION
Name of the Student:
Name of the University:
Author Note:

1COMPENSATION
In order to compensate the HR Generalist and the Banker, the following payment
system needs to be included.
Stock options:
For both these two types of employees, the stock option will be beneficial. Through
this process they will think themselves to be active participants of the company’s growth and
ownership. This will be aligning the interests of both HR and Banker with the programs of
the company. These employees will be given rights but not obligations to purchase shares
with no charges in the earnings (Correa & Lel, 2016).
Over time pay:
Like all the eligible staff of the company, the HR and Bankers will be paid for their
extra efforts like working in the holidays and spending over time for particular projects. In
this case they will be paid one and half times more than the regular pay rate. This extra
payment will be considered to be incentive and not paid regularly.
Performance pay:
There will be two types of performance pay. One is related to the commission based
method which will be employed in the monthly basis and another will be the appraisal system
where the annual growth of the employees will be considered for pay hike (Bettis et al.,
2018). Now the more the HR will be performing in retaining employees and banker for
selling particular products, the more they will be compensated upon their performances.
Profit sharing:
The HR Generalist and Banker will be given bonuses and tax benefit through such an
arrangement where the employers will share the profit with them. This will be considered as
bonus and given to the employees in a particular situation or reason. This profit sharing can

2COMPENSATION
be for the annual sales growth or celebration cause like Christmas. This is however notrelated
to the process for achieving targets by them.

3COMPENSATION
References:
Bettis, J. C., Bizjak, J., Coles, J. L., & Kalpathy, S. (2018). Performance-vesting provisions in
executive compensation. Journal of Accounting and Economics, 66(1), 194-221.
Correa, R., & Lel, U. (2016). Say on pay laws, executive compensation, pay slice, and firm
valuation around the world. Journal of Financial Economics, 122(3), 500-520.