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Structuring a compensation plan based on performance

Suppose you are the CEO of a manufacturing company with three large locations and 2,000 employees. Three of his direct reports are the Vice President of Manufacturing, Vice President of Sales and Marketing, and Vice President of Human Resources. How do you structure a compensation plan based on performance for each of these managers? Be specific in the compensation structure.

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Compensation "is the 'glue' that binds the employee and the employer together and in the organized sector, this is further codified in the form of a contract or a mutually binding legal document that spells out exactly how much should be paid to the employee and the components of the compensation package."1 The Chief Executive Officer is responsible for a firm's operations and performance. The CEO is ...