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High Technology Compensation



Overview:

CRI has extensive experience working with all types of technology firms on the development of creative and effective compensation programs that are aligned with organizational goals and objectives.

Areas of expertise:

  • Hardware
  • Software
  • Storage
  • Telecom
  • Semiconductors
  • Security
  • E-commerce


Case Studies:

Case Study #1: Competitive Executive Compensation Market Study - Software Co.

Issues:

  • Existing job descriptions were out-of-date and not accurate
  • Salaries were perceived to not be in line with competitive market
  • Employee morale was low
  • Board was concerned with equity levels, option grants, and deferred compensation
Solutions:

  • Clarified compensation philosophy with senior management and the Compensation Committee
  • Utilized Position Description Questionnaire to determine appropriate duties and responsibilities of positions
  • Market priced all positions utilizing comparable published surveys
  • Conducted a peer Proxy Analysis to determine competitive levels of base salary, annual incentives, stock option grants, restricted stock usage, total direct compensation, perquisites, benefits, and deferred compensation arrangements.
  • Conducted analysis of individual compensation compared to competitive market
  • Made recommendations to board to adjust the salaries and target incentive levels, as well as option allocation, where necessary, to reflect competitive market levels

Case Study #2: Sales Compensation Plan - Semiconductor Company

Issues:

  • Need to focus sales team to push new products, maintenance services, and get their product "designed in" to the end product
  • Desire to provide competitive compensation levels consistent with its competitive market
  • Absence of sales incentives within the total compensation package with sales incentives.
  • Need to recognize account size with different incentive potentials
Solutions:

  • Evaluated competitive market to determine levels of base and total compensation
  • Designed sales incentives based on desired mix of fixed and variable compensation
  • Provided weighting of goals to focus attention on desired results
  • Developed incentives to reward for team level achievement of sales goals, and included non-sales personnel in the process
  • Differentiated awards based on size and complexity of sales responsibilities
  • Developed administrative and tracking guides for effective plan management
  • Implemented a non-cash based reward plan

 

Case Study #3: Computer Services Company

Issues:

  • Limited incentives for management population
  • Incentive awards not tied to results
  • Incentive payouts the same to all managers, regardless of performance or job level
  • No minimum performance requirement to earn rewards
  • Awards based on departmental efforts; individual contributions not factored in
  • No motivation to exceed departmental goals
Solutions:

  • Provide incentives tied to results that exceed stated goals
  • Objectives structured to drive business plan objectives
  • Target incentive awards will vary based on job level and individual performance
  • Maximum award levels established to provide additional incentive
  • Awards determined by combination of department and individual performance
  • Individual's job performance must be satisfactory in order to be eligible
  • Job levels established based on competency statements

 

Case Study #4: Telecommunications Company

Issues:

  • Management compensation package not tied to performance
  • Pay for Performance not actively used to determine increases and bonuses
  • Desire to provide above market incentives as retention tool
  • Need for incentives that drive short-term performance and long-term growth
Solutions:

  • Adopt a Compensation Philosophy as baseline for salary administration
  • Design salary structure to cover management positions
  • Develop annual incentive plan tied to company performance

We are available to answer any questions you may have, and to provide the necessary support to your organization.  Please contact us or call us directly to speak with our compensation consultants at 877-934-0505.

 

 

 
 

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This information is not intended for use without professional advice.

310 Route 17 North, Upper Saddle River, NJ 07458
T: 877-934-0505 or 201-934-0505 F:201-934-0737
e: inquiries@compensationresources.com
 
 


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