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The CEO of your company sits on several other Boards, as is the practice in the industry. The CEO is going to annual meeting where one of the agenda items is to vote on the compensation package of the CEO and CFO of Genetics, LLC, another company in the industry. The Board of Genetics has hired a consultant who is recommending a 20% increase in the base salary of the CEO and CFO as well as an aggressive set of stock options which, if the sales of the company increase, will nudge the salary package into seven figures. From your research you know that the current salaries of the Genetics CEO and CFO are already at the top of the scale. Genetic’s preliminary annual report indicates that they are about to launch a major new product which is in the last stages of review by the FDA. You also know that Genetics tends to be a bellwether for salaries for CEO’s in your industry.
The CEO of Genetics sits on your board and will be voting on your compensation package which comes up in two months at your annual meeting. You have hired the same consulting firm to do the compensation survey. You expect a similar report from the consulting firm. Thus, you will be positioned to ask for a significant raise and would expect reciprocity from your colleague.
Be Intelligent: Identify the Issue and the Values in Tension
1. Issue
In one sentence, identify the issue for this problem.
2. Values in Tension
In three or four bullet points, identify the values in tension.
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