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Artificial Intelligence Medical (i.e., AIM) Inc. is a very profitable new company. Although it has only been in business for two years, it has already doubled the size of its workforce and quadrupled its profits. The CEO/founder has stepped aside recently in favor of a new CEO in the wake of employees' frustration and social media messages about the benefits inequity and lack of motivation for teams at the company. The new CEO wants to change the way executive salaries are determined and find ways to motivate the project teams. The project teams typically are assigned to an artificial intelligence product such as a robot to perform routine surgeries or diagnostic software used by different medical units of a hospital for patient diagnosis.
The new CEO has tasked your team of employees with determining a general proposed solution to the inequity in pay at the company and to address the lack of motivation for the 125 technicians and medical staff that work in project teams of 25 employees each. Each technician or staff member receives a salary of $35,000 per year while the CEO and V.P.s receive $500,000 per year (the CEO also holds 10% of the company stock) and the managers receive $50,000 per year. There is a CEO, 2 VPs (Manufacturing and Finance), a Marketing Manager, a Sales/Customer Service Manager, and a Technical Support Manager along with the 125 technology-savvy employees working at the company.
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