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

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

PAD FINAL

For this assignment, put all of the assignments in one document. You must go through all four assignments that I attached, and use them to create one document. After you have combined all of the assignments, put them all into one, and add two pages that ends up being the

human resources

Willowbrook Healthcare System is a mid-sized regional health care provider with multiple hospitals, outpatient clinics, and a robust network of medical professionals. With over 2,000 employees, the organization is expanding its services to meet the growing needs of its community. However, Willowbrook recognizes that its current approach to job roles

module 7 EI

Module 6: Critical Thinking/Application Prompts Instructions Each week, you will be presented with a series of critical thinking prompts and application prompts. Please copy/paste the prompts into an offline document (Word, for example) and compose your responses offline (be sure to save your work).  Then click on the “Submit Assignment”

Human Resource Management auditing assignment

Bran I will attach the first paper and you can add on the paper with this part. Section 5: Section 5: Using Auditing to Ensure Accountability and Transparency in Governmental Financial Operations Instructions:  Auditing plays a pivotal role in governmental financial operations by ensuring compliance with laws and regulations, detecting

Discussion 2

First Post—Module 2 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

applied project

Applied Project Presentation This is the final project for the paper that I attached. You did this paper for me, now I need you to add a PowerPoint presentation to go with it. I have to make this last anywhere from 10-12 minutes. Present this presentation with colorful slides that

human resources

Establishing a training and development program begins with determining employee and organizational training needs, goals and objectives. It is critical that the training objectives support the organization’s goals. Once the organization’s goals are determined, the next step is to determine the best way to provide training. To achieve this, the

human resources

In today’s workforce, organizations need to offer a variety of compensation types to meet business goals and employee needs. Base pay, bonuses, commission, stock options, and benefits are a few of the different types offered. Base pay is the standard wages an organization pays an employee (this could be hourly

Final Presentation

Applied Project Presentation This is the final project for the paper that I attached. You did this paper for me, now I need you to add a PowerPoint presentation to go with it. I have to make this last anywhere from 10-12 minutes. Present this presentation with colorful slides that

ogl 551 week 6

OGL 551 Instructions Part A Each week, you will be presented with a series of critical thinking prompts and application prompts. Please copy/paste the prompts into an offline document (Word, for example) and compose your responses offline (be sure to save your work).  Then click on the “Submit Assignment” button

public finance

Instructions:  Effective financial management is essential for governmental organizations to ensure responsible use of public funds and achieve operational objectives. In this discussion, let’s brainstorm and share ideas on how to apply strategic purchasing practices and implement efficient cash management techniques to optimize government expenditures and mitigate financial risks. Looking