A compensation system
Evaluate a compensation system of your choice in terms of how the compensation reinforces the behaviors needed to meet the company’s objective. Next, propose three improvements to that compensation system based on your evaluation. Provide specific examples using additional sources, if necessary, to support your rationale.
Sample Answer
Compensation System Evaluation: Tesla’s Performance-Based Pay
Company: Tesla, Inc.
Industry: Electric vehicle manufacturing and clean energy
Compensation System: Performance-based pay, with a mix of salary, bonuses based on individual and company performance metrics, and stock options.
Company Objectives:
- Become the world’s leading sustainable energy company.
- Accelerate the world’s transition to sustainable energy.
- Grow production and sales of electric vehicles significantly.
- Develop and bring to market innovative clean energy technologies.
- Attract and retain top talent in the tech and automotive industries.