Performance Compensation and Management in Tesla

Running head: PERFORMANCE COMPENSATION AND MANAGEMENT
Performance Compensation and Management in Tesla
Name of the Student:
Name of the University:
Author’s Note:

1PERFORMANCE COMPENSATION MANAGEMENT IN TESLA

2PERFORMANCE COMPENSATION MANAGEMENT IN TESLA
Executive Summary
The aim of the project is to evaluate the performance and the compensation plan in the Tesla
Company and the relevant compensation structure for the employees of the company. The
compensation and the pay structure is important in an organisation which binds the
employees of the company to work more and get motivated Monetary and non-monetary
incentives are some of the best part of compensation plan, which enables the employees of
the company to work more and earn higher. The recognition policy of the company has also
been identified in the project after evaluation of the company’s policy with respect to
employee’s performance and the linkage and mapping of the same with the compensation and
performance management they get. Finally the benefits flowing to the organisation in
implementing the discussed compensation strategies and the benefits flowing from the same
are discussed.

3PERFORMANCE COMPENSATION MANAGEMENT IN TESLA
Table of Contents
Introduction................................................................................................................................4
Discussions.................................................................................................................................5
Brief Description of the Organisation and the Current Compensation Plan..........................5
Advantages and Disadvantages of Variable Compensation Pay Policies..............................7
Types of Variable Compensation Policies selected by the Management of the Company....8
Pros and Cons of Peanut Butter Approach...........................................................................10
Application of Relevant Remuneration Concept.................................................................10
Benefits of Implementation of Reward and Compensation Policies...................................11
Conclusion................................................................................................................................11
Reference..................................................................................................................................12