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Interactive Exercise
Problem Statement
The Compensation Committee of Plastic Plumbing Products Corporation is about to engage in its annual examination of the compensation package for the company's top 3 executives:
- Chief Executive Officer (CEO)
- Chief Operating Officer (COO)
- Chief Financial Officer (CFO)
They have asked you, as Chief People Officer, to provide them with market data regarding the compensation packages of other comparable companies. The information the committee needs is the total annual cash compensation.
Organization Data
Plastic Plumbing Products Corporation is located in Akron, Ohio. Last year's revenues were $125 million. In the past, the Compensation Committee has paid these executives at the 75th percentile, since the company has been quite profitable. Revenues are projected to increase to $150 million over the next year.
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