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Compensation's Relation to Financial Performance

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How is compensation related to an organization's financial performance? How could compensation be affected if an organization is underperforming financially? How could compensation be affected if an organization is over performing financially

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Compensation should be tied to financial performance, since company performance is often linked to employee performance. The 2010 BDO Compensation Trends by City Study found that "CEOs of companies with positive shareholder returns received pay increases and those with negative shareholder returns saw pay decreases"(Miller, 2010). However, the study found that the top tier of the bottom ...

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This solution explains how compensation is related an an organization's financial performance.APA formatted reference is included.