Our Services

Get 15% Discount on your First Order

[rank_math_breadcrumb]

Week DiscussioN response

SEE ATTACHED

Please response to each below using this discussion question.

Which component of compensation is most essential to motivate executives to lead companies toward competitive advantage? Discuss your rationale:

Please cite references for each response:

1 LW}]Executives play very important roles within the organizations they work for. They are representative of the organization, they help to create and implement organizational goals, make strategic decisions to help achieve these goals, and can be some of the most influential individuals within the organization. Therefore, it is important for businesses to have a solid compensation package in place in order to retain top executive leadership. Some compensation options for executives include base salary, bonuses, stock options, deferred compensation, and short-term and long-term incentives (Martochhio, 2020).

Essential aspects for executive compensation do exist, but they vary based on the organization, its size, and its location. Long-term incentives are perhaps the best way to motivate executives toward a competitive advantage and meet organizational goals and strategies. And it is best for the companies to evaluate compensation regularly to ensure compensation aligns with company goals and the executive leadership. Long-term incentives are usually delivered in equity that can include, stock options, restricted stocks, and performance shares (Groysberg, 2021). This type of incentive can be delivered over a longer length of time and is usually established as a fixed amount that is gained once the goal is met. It is estimated that 41% of executives get their incentives in cash bonuses and 51% in equities (Groysberg, 2021).

Companies need to show not only a relationship between executive compensation and performance, but they must also demonstrate they pay the appropriate level for performance. This is especially crucial when attracting and retaining top executives that can drive performance metrics. Executives are motivated the desired performance increases under the right incentive plan when conditions such as transparency shown between performance and compensation and when executives understand the performance goals and view them as achievable. The ones responsible for setting up executive compensation plans should also be able to provide sound rationale for the goals and the approach they selected (Wang, 2008).  

  
References

Groysberg, B, et.al. (2021). Compensation Packages 
That Actually Drive Performance. Harvard Business Review. 

Martocchio, J. (2020). 
Strategic Compensation: A Human Resource Management Approach (10th ed.) Pearson.

Wang, D. (2008). 
Setting 
Goals for Executive Incentive Plans. SHRM. 

2GE} Geryl Zolvik posted Oct 7, 2024 1:58 PM

Subscribe

The key aspect of compensation that plays a vital role in encouraging executives to steer companies towards gaining a competitive edge is equity-based compensation. It connects their individual financial goals with the sustained success and expansion of the business.

Equity-based compensation is a method of compensating executives through the allocation of shares or equity in the company, rather than using cash. This form of compensation can be provided as a supplement to or as a replacement for part of an employee’s salary (IRS, 2024).

At the heart of equity compensation lies the fundamental idea of aligning interests by transforming employees into stakeholders through the provision of a share in the company ownership. This approach not only deepens commitment among employees but also links executive’s financial futures directly to the company’s performance and growth (Incentiv, 2024).

In conclusion, equity-based compensation acts as a pivotal element in motivating executives to guide their companies towards competitive advantage. By linking personal financial objectives with the sustained prosperity and growth of the business, this approach cultivates a stronger commitment and aligns the interests of executives with those of the company’s stakeholders. In the end, this strategy not only boosts dedication but also links the financial well-being of executives directly to the overall performance and success of the company.

 

References

Incentiv. (2024). 
Equity Compensation: What It Is and How It Works. Retrieved from Incentiv:

IRS. (2024, June 25). 
Equity (Stock) – Based Compensation Audit Technique Guide . Retrieved from IRS.gov: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Human Resource Management

Scenario analysis Instructions Choose one of the two scenarios provided below (Healthcare or Business Management). Review your chosen scenario carefully and complete the four tasks that follow. This assignment assesses your ability to evaluate the statistical suitability of a problem, recommend a solution based on data, and construct and execute

Human Resource Management

Analyze and interpret results of financial decision tools Criteria Excellent Proficient Developing Needs Improvement Not Submitted Criterion Score Executive Summary 20 points 20 Points Clearly summarizes situation, key findings, and provides 2+ high-level recommendations. 17 points 17 Points Clearly summarizes with at least 1 recommendation included. 15 points 15  Points

DIscussion 1 MR

Discussion 1 · How might the projected changes affect an organization’s vision, mission, and values? · Is it possible for an organization to successfully operate when its vision, mission and values are ever-changing? · Will vision, mission, and values become obsolete and be replaced? If so, by what? Give concrete

human resources

PESTLE Analysis on Selected Industry It is important for organizations to gather data and evaluate how the six macro factors (political, economic, social, technological, legal, and environmental) impact their ability to compete in the targeted industry. Watch this video that describes how to perform a PESTLE analysis, as well as how

week 2

see attached  What does “professional communication” mean to you?   You will lose significant points each week if the reflection assignments are not substantive. References are required for all written assignments. The general rule for references is 1.5 references per page submitted. The reference requirement means a 2-page paper requires

Sample Letter

Check attachments need rephrasing  To: [email protected] Subject: Request for Reconsideration Hi Ms. Thompson, I’m a constituent and a behavioral health case manager from Dothan, Alabama. I am writing to advocate on behalf of a service user who has been denied access to a medically necessary benefit, and I would like

human resources

Employee compensation and benefits are a key way that companies are able to attract talented employees. To design a competitive compensation and benefits package, HR professionals choose from an array of salary options and benefits providers. There are also legal considerations that must be considered. Consider a small company of

Financial Analysis

Human Resource Management Financial Analysis Purpose To evaluate your ability to analyze financial statements, interpret key financial ratios, assess operational performance, and provide data-driven business recommendations through comprehensive comparative analysis of public companies.   Associated Skills · Financial statement analysis and ratio calculation · Trend analysis and data interpretation ·

Discussion 4

Discussion 4 Please answer the questions below. Use question and answer (Q&A) format for your response; in other words, include the original question along with your answer in the reply. Within your post support your responses with information from at least two reputable sources (library and/or web-based) and provide the

Week 5

See attachments below Week 5 Assignment: Practicing Cultural Humility For this Assignment, you will interview someone who is from a different culture than your own, keeping in mind the many ways culture may be defined (for example, ethnicity, religion, region, nationality, and language groups). Practicing cultural humility, conduct a 15–20-minute

Human Resource Management WEEK 4 ASSIGNMENT

SEE ATTACHMENTS BELOW Week 4 Assignment: Applying Crisis Intervention Theories and Models Theories and models of crisis intervention frame and inform the decisions you will make to resolve the issues that come before you.  Theory explains a phenomenon and is intangible – it tries to define the “why” and the “what.”

DIscussion 3

Discussion 3 First Post—Module 3 As of February 2017 there were 28 states with right-to-work laws. To review the list of right-to-work states, see: National Conference of State Legislatures (2017).  Right-To-Work Resources.  Retrieved from Then conduct your own research on the topic. Please answer the questions below. Use question and

SLP3

Module 3 – SLP Organized Labor In the SLP assignment, you have the opportunity to evaluate strategies taken by union organizers to organize nonunion workplaces. Review the sources pertaining to union organizing listed on the Module 3 Background page, review the indystar.com article (below), and conduct your own research. Hussein,

case 3

Module 3 – Case Organized Labor Assignment Overview This assignment is about unions and labor contract agreements. The written agreement is a key element to the understanding of how actions and activities take place in the workplace. Often, however, there are differences in opinion between management and labor. View the

human resources

Artificial intelligence (AI) is transforming the way organizations develop and deliver training programs, making learning more efficient, personalized, and engaging. Platforms that are AI-driven can analyze employee performance data to identify skill gaps and recommend tailored training materials, ensuring that each individual gets the right content at the right time.

human resources

In human resource management, job evaluations are a critical tool for determining the relative worth of jobs within an organization. The goal of the job evaluation is to ensure that compensation is aligned with job responsibilities, required skills, and the value that each position brings to the organization. Internal consistency

Deliverable 07 – Professional Development Plan for Your Team

  Scenario As a team manager, you have recently completed training in professional growth and leadership, which you will need to turn around and implement with your team members. You are directly responsible for a team of 10 employees, and you will be creating a growth development plan for each