Looking to Benchmark Pay?
Interactive Exercise
Background
ERI's Executive Compensation Assessor® (XA) can provide much of the information required to obtain a reasonable salary estimate for a shareholder-employee.
This research tool provides a range of values for salary, bonus, and total compensation data. The salary range allows you to adjust for the ability and performance of the executive and the success of the company. The Executive Compensation Assessor also allows you to customize the data for location, industry, and company revenue. We'll teach you how to use this tool to research the case at hand.
Problem Statement
Using the Black Mesa Products example, find out if Andy's salary ($106,000) is reasonable considering the circumstances.
Instructions
Select the Load Step-by-Step button to follow along with this analysis. You may wish to print out this PDF tutorial (which will open in a new window).
Note: To view the following tutorial, you will need to use the Adobe Acrobat Reader. If you do not have this on your computer, please click on Instructions in the left-hand toolbar to download it now.