Month: March 2022

If given the opportunities to work internationally there are many variables and factors that I would take in to consider before pursuing the opportunity. As this can be a huge move for my career and personal path as it requires logistics to be addressed in terms of relocation, the scope of the job, duration, and how I will be compensated for the position.

As learned from the textbook reading HR professionals construct international compensation packages based on three factors: the term of an international assignment, staff mobility, and equity pay referent groups (Martocchio, 2019). With this, I would consider these variables when deciding to go as the term of the assignment compensation can be varied based on the duration of the assignment which would influence my decision to take the position.

The first consideration I would evaluate would be the duration of the assignment as short – term assignment of less than a year does not require much change to domestic compensation. However, long assignments require more benefits such as education expenses for children, housing allowances, adjustments to avoid paying double income taxes (Martocchio, 2019). Depending on how long I will be working overseas I would want to be compensated appropriately for my duration. As I am picking up my life and moving across the country which is not an easy decision. The compensation and benefits would have to be worth it for me to convince myself to move and pick up my life and career.

To add, I would need a set time and duration of the assignment. Having a clear understanding of the duration of my position would influence my decision to take the position and influence how well I could get adjusted moving. Without a clear timeline, I do think that it would be hard to not only do my job well but, get adjusted because I would never know how long it would take to get acclimated to the location and work environment.

Another variable that I would take in would be the company’s willingness to accommodate me to move to a foreign place. Not only monetary compensation would be considered but, the incentive to get me to feel comfortable working and wanting to work in a new location. Based on this, I would consider how well the company is willing to invest and take care of me when it comes to working in another company. Without support from the company, I would most likely not take the position.

Lastly, I would consider what the company would be willing to pay me based on referent groups (Martocchio, 2019). Along with how they determine my compensation packaage and salary as a whole which can be subjective due to the country averages and rates for positions.

With this, depending on the location and position it would influence my decision to take the job because compensation packages can vary from place to place. Lastly, I would want to be accommodated appropriately based on the scope of the job but, also the cost of living and depending on what is being offered it would influence my decision to take the position.

Reference:

Martocchio, J. (2019). Pearson etext for strategic compensation: A human resource management approach — access card (10th ed.). Pearson.

When it comes to the idea of executive compensation, I would argue that the compensation is excessive between the pay gap among workers on the lowest levels and those in higher position. With this, I can see how the excessive salary can be justified and can be a valid argument from those in executive positions to some extent. My rational for this is that those in executive position have more responsibilities, demand, and their workload is more intense than those on lower levels. However, I would argue that the amount they are being paid are too much which is creating a large pay inequity among companies. An example, of this can be seen in 2018, where the median total compensation for S&P 500 CEO rose 4% to $12.3 million. As well, this can be seen in Microsoft’s CEO Satya Nadell who got a 66% raise making his compensation roughly $43 millions and CEO Bog Iger $66 million compensation package which was greater than 1,000 more than the median pay of employees at Disney (Sahadi, 2019). 

To add, something that was interesting when it comes to executive compensation is CEO compensation has grown quicker than the pay of the top 0.1% of wage earners which indicates that CEO compensation growth does not reflect a competitive race for skills and productivity only rather it reflects an increase in the value of highly paid professionals. Rather, CEO compensation can reflect the power of CEOs to extract concessions (Mishel, 2021). 

Some factors of that can help explain the rise in executive compensation can be the components of executive compensation packages which can include the annual base pay and bonuses, short term incentives, differed compensation, equity agreements, and stock options (Mochichi, 2019). In which these variables are taken in consideration when choosing to hire and retain CEO’s and be competitive in the market. As companies are matching and or trying to gain a competitive advantage when securing a valued CEO which is causing a rise in compensation.

Another factor, that can be the board of directors of a said company who can advocated and argue for a said salary. As they are key stakeholder within the company, they can use their power within to advocate for raised based on how well the company is preforming and base their decision on how they feel the CEO is doing and or the direction the company is headed. In combination, hiring and retaining a CEO that has a good reputation and is paid well can indicate perceptions of profitability and can gain new investor interests (Whelton,n.d). 

When it comes to executive compensation, I do think that it is subjective to the company. As the company and its shareholders have an influence on how much they are willing to pay their executives and benefits to offer them. However, to reduce inequity’s among executive compensation and those that are lower there needs to be some sort of policy that put limitations on how much a CEO can make and or have a capped salary increase during the year. 

Along with this, I do think that there needs to be a better way to manage CEO performance and compensation should be adequately based on those said performance metrics. 

Bibliography

Mishel, Lawrence. 2021. “CEO Pay Has Skyrocketed 1,322% since 1978: CEOs Were Paid 351 Times as Much as a Typical Worker in 2020.” Economic Policy Institute. Retrieved March 5, 2022 (https://www.epi.org/publication/ceo-pay-in-2020/).

Sahadi, Jeanne. 2019. “Why CEOs Are Paid so Much.” CNN, October 24.

Whelton, Russell S., and Deborah R. Bishop. n.d. “Effects of Excessive CEO Pay on U.s. Society.” Svsu.Edu. Retrieved March 5, 2022 (https://www.svsu.edu/media/writingprogram/activedocs/Whelton_article.pdf).

Martocchio, J. (2019). Pearson etext for strategic compensation: A human resource management approach — access card (10th ed.). Pearson.