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This exercise is available to Assessor subscribers only.
Now it's your turn to solve a real-life problem!
If you have a subscription to ERI's Executive Compensation Assessor® (XA), analyze the following problem:
Problem statement
Salient Corporation is losing executives at an alarming rate. Your job is to ascertain whether or not your organization's pay levels are below market rates.
Your organization has $300 million in annual revenue and an eSIC code of 1300. Use today's date and Allen, Texas, as the location.
Currently, three executives are paid as follows:
| POSITION | BASE SALARY | INCENTIVE | TOTAL CASH |
|---|---|---|---|
| Chief Executive Officer | $780,000 | $720,000 | $1,500,000 |
| Chief Engineering Officer | $330,000 | $140,000 | $470,000 |
| Chief Financial Officer | $350,000 | $190,000 | $540,000 |
Exercise Question
Which job's annual total cash compensation is paid below median market rates?
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