Presented to:- Sir Ahmad Tisman Pasha Presented by :- Shahbaz Hussain ROLL NO # 07 – 26 Department of computer science BZU Multan
Incentives for manager and executives • Short term incentives • Long term incentives • Strategy and executive compensation • Incentives for salespeople • Salary plan • Compassion plan
Combination plan • Setting sales quotas • Strategic sales incentives 3.Incentives for other professionals and no managerial employees • Merit pay for incentive • Merit pay options • Incentives for professionals employees
Manager and executives • Manager play a central role in influencing divisional and corporate profitability and put into reward them. • Most manager get short term bonus and long term incentives in addition to salary.
Short term incentive • Most firms have annual bonus amine at motivating the short term performance of manager and executives. • Short term bonus can easily result in plus or minus adjacent of 25% or more to total pay. • Firms offering short term incentives plan virtually all in 96% provide those incentives in cash.
There are three basic issues to consider short term incentives. • Eligibility • Fund size • Individual awards
Long term incentives • Employers use long term incentives to inject a long term perspective into there executives decisions. • Long term incentives plan about 48% offer in stock option. • Long term incentives are intended to motivate and reward management corporate growth shareholder value. • Long term incentives encourage executive to stay with company.
The right to purchase a specific number of shares of a company stock at specific price during specific period of time is called stock option. • Mega option grants are large in annual grants. • Under phantom stock plan executive receive not shares but ‘unit’ that are similar to shares of company stock.
In performance plans, traditional executive incentives often don’t build in any real risk for the executive. • Developing long term incentives for a frim operations presents some tricky problems particularly with regard to taxes.
Define strategic context for the executive compensation program including the internal and external issues that face the company. • Check the executive compensation plan for compliance with all legal and regularity requrments and tex efectiveness.
Incentives for salespeople • Sales compensation planes typically rely heavily on incentives. • Some salespeople get straight salaries. • Most people receive a combination of salary and commissions.