COMPENSATION/INCENTIVE MANAGEMENT

Questioner
SALARY

Does your organization plan on a FOCAL or Anniversary

basis?

Please describe your high level process (Budget planning,

distribution of worksheets, roll-up, etc.)

Does your organization have a need to plan in multiple pay

rates? (Hourly, weekly, annually)

Does your organization have a need to plan in multiple

currencies?

Does your organization use Compa-Ratio or Range

Penetration?

Does your organization currently share salary market

information during planning? Where do you get you Market
Salary information?

How does your organization calculate the cost of

compensation or budgets? Do you utilize budget groups?
How are they structured?

Are managers held accountable to budgets? How are they

monitored during the planning cycle?

Are there any additional budget rules (i.e. by location, grade,

exempt status)? If so, what are they?

What types of salary recommendations do managers make

during planning (i.e. merit increases, adjustments,
promotions, and lump sums?

Do managers use a salary increase matrix or some guideline

policy regarding merit increases (quartile, lower-middleupper tiered, linear-guideline structure)?

Does your organization prorate merit increases,

adjustments, and/or promotions?

Does your organization plan salaries for part-time

employees?

PLEASE PROVIDE A SAMPLE WORKSHEET

BONUS

What types of variable pay/bonus programs do you have? (If

possible, can you please provide an example of plan)

What are the variables for the bonus programs? Do

managers have discretion to affect payouts or are they
formula driven based on set measures?
Target %:
Performance %:
Other factors:

Are there multiple components for the bonus plan?

(Corporate, Divisions, Individual, and etc.) What are the
weights and/or how are they determined?

What is the frequency of the bonus plan payouts? Are they

driven by performance evaluations?

Is the bonus planned/calculated at the same time as the

salary planning process?

STOCK

What type of stock programs do you have? (i.e. NonQualified, Discretionary, Restricted)

How do managers make stock recommendations (i.e. by

number of shares, stock value amount or percentage of
salary or other value)?

What method do you use for valuing a stock grant? (i.e.

Black-Scholes or FMV)

Does your organization provide guidelines to managers for

stock planning? What other information do you provide
managers for stock planning?

Who provides stock administration for your organization

(Financial Institution that keeps track of vesting schedules,
value, and etc.)?