HIRE A WRITER!
Paper Types
Disciplines

Compensation Structures and Strategic Planning, Essay Example

Pages: 1

Words: 380

Essay

McKesson is a drug wholesaler in the United States that has recently come under fire for the manner in which their compensation policy is ineffective, weak and many way unjust. This is because the compensation policy for high ranking officials, such as the CEO is purely based on the profitability of the company regardless of any losses, in terms of company assets, that are incurred under their tenure. (Silverman, 2013)

In recent years, McKesson has paid out over $1 billion to resolve legal and regulatory issues and disputes. Despite this, the company’s CEO received compensation to the tune of $131 million in 2012 (Silverman, 2013). The compensation policy at McKesson does not apple any “Clawback Policy” within their compensation strategy.

The company has in the last recent years lost a significant amount of assets due to the increasing number of legal and regulatory cases levelled against it. However, the value of these lost assets has not been recovered in any way. This is regardless of the fact that the CEO continues to receive incredible amounts in compensation. The flaw in the McKesson compensation policy is that misconduct is defined as actions that are on an international level, irrespective of the harm caused by such activities, as long as they do materially harm McKesson (Silverman, 2013).

This compensation policy may be improved by instituting a pay-for-performance policy for executives. This would be geared towards discouraging the executives in activities that may inflict significant financial damage to McKesson. Furthermore (Greene, 2010), instituting a “Clawback Policy” would further deter senior executives from such behaviour. The “Clawback Policy” would ensure that in the case where significant financial harm comes to the company under an executive’s tenure, such loss would be recovered from the respective executive’s compensations.

References

Greene, R. J. (2010). Effectively managing base pay: Strategies and programs for success. Society for Human Resources Management.

Sammer, J. (2007). Weighing Pay Incentives. HRMagazine, 52(6).

Silverman, E. (2013, July 30). McKesson Fights Big Investors Over A Clawback Policy. Retrieved from Forbes.com: http://www.forbes.com/sites/edsilverman/2013/07/30/mckesson-fights-big-investors-over-a-clawback-policy/

Smith, S., & Mazin, R. (2004). Compensation: How should employees be paid? In S. Smith, & R. Mazin, The HR answer book : an indispensable guide for managers and human resources professionals (pp. 98-116). New York: AMACOM.

Society for Human Resource Management. (2010). Introduction to the human resources discipline of compensation. Society for Human Resource Management.

Time is precious

Time is precious

don’t waste it!

Get instant essay
writing help!
Get instant essay writing help!
Plagiarism-free guarantee

Plagiarism-free
guarantee

Privacy guarantee

Privacy
guarantee

Secure checkout

Secure
checkout

Money back guarantee

Money back
guarantee

Related Essay Samples & Examples

Jehovah Witness, Essay Example

Jehovah’s Witnesses, a religious movement, was officially founded in 1884 as the Watch Tower Bible and Tract Society by Charles Taze Russell (1852-1916) and officially [...]

Pages: 1

Words: 663

Essay

Rape, Racism and the Law, Essay Example

The article discussed in the present paper suggests a great discrepancy in the criminal justice system of the USA concerning identification and punishment for rape. [...]

Pages: 1

Words: 1183

Essay

Critical Analysis of Attached Article, Essay Example

“A social Construction of Race” by a legal scholar Ian F. Haney Lopez discusses a disproved notion that “racial divisions reflect fundamental genetic differences.” (Lopez)  [...]

Pages: 1

Words: 399

Essay

A New Child Development Opportunity, Essay Example

Introduction Recent years were marked with the growing commitment to technologies in various fields of human activity. Child development became one of the most interesting, [...]

Pages: 1

Words: 2225

Essay

London by William Blake, Essay Example

The 16-line poem by William Blake entitled “London” is about the difficulty of living in an impoverished and painful city.  In lines 3-4 of the [...]

Pages: 1

Words: 361

Essay

Inferno, Essay Example

Dante Essay The fifth and tenth cantos see different points of Dante and Virgil’s story.  At different Circles of Hell, these two cantos help to [...]

Pages: 1

Words: 1953

Essay

Jehovah Witness, Essay Example

Jehovah’s Witnesses, a religious movement, was officially founded in 1884 as the Watch Tower Bible and Tract Society by Charles Taze Russell (1852-1916) and officially [...]

Pages: 1

Words: 663

Essay

Rape, Racism and the Law, Essay Example

The article discussed in the present paper suggests a great discrepancy in the criminal justice system of the USA concerning identification and punishment for rape. [...]

Pages: 1

Words: 1183

Essay

Critical Analysis of Attached Article, Essay Example

“A social Construction of Race” by a legal scholar Ian F. Haney Lopez discusses a disproved notion that “racial divisions reflect fundamental genetic differences.” (Lopez)  [...]

Pages: 1

Words: 399

Essay

A New Child Development Opportunity, Essay Example

Introduction Recent years were marked with the growing commitment to technologies in various fields of human activity. Child development became one of the most interesting, [...]

Pages: 1

Words: 2225

Essay

London by William Blake, Essay Example

The 16-line poem by William Blake entitled “London” is about the difficulty of living in an impoverished and painful city.  In lines 3-4 of the [...]

Pages: 1

Words: 361

Essay

Inferno, Essay Example

Dante Essay The fifth and tenth cantos see different points of Dante and Virgil’s story.  At different Circles of Hell, these two cantos help to [...]

Pages: 1

Words: 1953

Essay