Ethics and performance-based compensationthe executive

Assignment Help HR Management
Reference no: EM13360784

Ethics and Performance-Based Compensation

The executive officers of the Fancy Expensive Wine Corporation have a performance-based compensation plan. The performance criteria of this plan is linked to growth in earnings per share. When annual EPS growth is 12%, the Fancy Expensive Wine Corporation executives earn 100% of the shares; if growth is 16%, they earn 125%. If EPS growth is lower than 8%, the executives receive no additional compensation. In 2003, Nancy Noseup, the controller of the Fancy Expensive Wine Corporation, reviews year-end estimates of bad debt expense and warranty expense. She calculates the EPS growth at 15%. Peter Peters, a member of the executive group, remarks over lunch one day that the estimate of bad debt expense might be decreased, increasing EPS growth to 16.1%. Nancy Noseup is not sure she should do this because she believes that the current estimate of bad debts is sound. On the other hand, she recognizes that a great deal of subjectivity is involved in the
computation.

I would say that Nancy Noseup recognizes that altering the estimate will benefit Peter Peters and other executive officers of the company. Current stockholders and investors will be forced to pay out the bonuses, with the altered estimate as a critical factor. Do you agree or disagree?

Reference no: EM13360784

Questions Cloud

Important information about compensation management1 list : important information about compensation management1. list three positions where wages are paid in terms of an annual
Compensation planuniversity physician : compensation planuniversity physician compensationphysicians practicing in eastern universitys hospital have the
Developing a compensation plandevelop a compensation plan : developing a compensation plandevelop a compensation plan. upper management has asked you to suggest a new compensation
A learning experiencelearning is characterized as any : a learning experiencelearning is characterized as any relatively permanent change in behavior that occurs as a result
Ethics and performance-based compensationthe executive : ethics and performance-based compensationthe executive officers of the fancy expensive wine corporation have a
Explain the solution to externalitywhat is an externality : explain the solution to externalitywhat is an externality and can you give an example of a positive externality and
Motivating employees for successword about your wisdom must : motivating employees for successword about your wisdom must be spreading because you are asked to lunch by another
Variable paywhat is variable pay and 5 types of : variable paywhat is variable pay and 5 types of compensation that could be included in a variable pay plan?what
Question about compensation systemshow do organizations : question about compensation systemshow do organizations establish appropriate objectives for their compensation

Reviews

Write a Review

HR Management Questions & Answers

  Explain human resources consulting firm

One of the areas in which many businesses need help is in the selection of employees and Analyze the need for a human resources consulting firm

  Find the total overhead cost

Total overhead cost - ABC Company's overhead amounts to $300,000 per period based on an output of 200 units of A, 300 units of B, and 500 units of C

  Hr activities that warrants remedial action in an organize

Length: 3,500 wordsSubmission method optionsAlternative submission methodTaskUsing relevant research/academic literature, critically review one (1) of the following HR activities that warrants remedial action  in an organisation of your choice. This ..

  It resource managementcan someone give me a detailed

it resource managementcan someone give me a detailed example of how information technology is being used to meet

  Question about human factors in technology

Technological expectations and perspectives are regarding technology in the workplace and how it either positively or negatively affects company goals.

  Show the implications for human resource management

Write about the implications for human resource management according to the changing nature of work and organizations

  Determine the role that human resources

Collective bargaining initiatives - Determine the role that Human Resources plays in collective bargaining initiatives

  Explain the description of strategic thinking

How should a person insure to continue and prepare their strategic thinking skills AFTER they have complete their college degree?

  Management of resources

The management of the human element of the organization or the management of technology?

  Assessment methods are evaluated

Human Resource-What are the criteria by which initial assessment methods are evaluated - What are the criteria by which initial assessment methods are evaluated? Are some criteria more important than others? What are some organization uses?

  Involving employees in compensation decisions

What do you think about involving employees in compensation decisions and Are there any compensation decisions which employees should be involved in

  Important information about performance management

Important information about Performance Management - Describe at least methods you could use to measure employee morale and What are the advantages and disadvantages of each method

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd