Suppose compensation is given by W = 450,000 + 220p + 15S, where W = total compensation of the CEO, p = company profits (in millions) = $300, and S = Sales (in millions) = $500. What percentage of the CEO's total earnings is tied to profits of the firm?
Please show calculations.© BrainMass Inc. brainmass.com October 9, 2019, 9:38 pm ad1c9bdddf
Plug in the numbers to calculate the compensation at given levels if ...
Answers a question on how to calculate the CEO's compensation given fixed and variable compensation components.