Q: What Comprises Reasonable Compensation?

Answer: Reasonable Compensation refers to the level of compensation which is considered “within market range” for a particular position. However, numerous factors are taken into consideration when determining reasonableness, including, but not limited to:

The Individual’s:

Education
Experience
Skills
Duties
Responsibilities

The Company’s:

Revenue size
Geographic location
Industry
Compensation philosophy
Hierarchy

The Industry’s:

Market conditions
Availability of talent
Influencing economic conditions

When determining reasonableness, a detailed market study must be conducted which considers the above factors in order to make a reasonableness determination.

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Compensation Resources, Inc. (CRI) provides compensation and human resource consulting services to mid- and small-cap public companies, private, family-owned, and closely held firms, as well as not-for-profit organizations. CRI specializes in executive compensation, sales compensation, pay-for-performance and incentive compensation, performance management programs, and expert witness services.
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