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Re: knowledge +- $$$

On Tue, 12 Jun 2001, Ludwik Kowalski wrote:

I never worked in industry but would like to know who
makes decisions about how much different people are
worth to a large company. Do rewards fluctuate from
year to year, according to assignments? Is there a
tenure equivalence to protect narrowly specialized
experts (those whose expertise gained over many
years would have little value outside the company)?

Previous posts were congruent with most of my experience. Some additional
perspective based on 15 years of managing/directing in a
large telecom.
In my experience some component of your "salary at risk" (i.e. bonus) was
based on corporate performance, some on meeting team goals and some on
personal contributions/value to the company. We were given a bonus pool
and could distribute it within certain guidelines however we wished. Our
most valuable technical resources (those with both needed scarce technical
skills and vertical business knowledge) could/would typically receive a
bonus of 20% of salary while less valuable or less contributing people
would receive 4-5% of salary.
Base salary was both a combination of experience, skill and perceived
industry value.
For our most valuable individuals we would provide some type of non
compete incentive. If they left their non vested stock options and up to 2
years salary would be provided if they did not go to certain competitors.
If they did go to those competitors they would lose this compensation.
So someone could leave the telecom, go and teach and still get paid for a
couple of years.
In the yellow pages business the premise salespeople could/did make the
largest salaries. Based on a negotiated commission they could earn
$200k in the early 90's. This was as much as a VP would make. Many of our
managers would go to sales for their last few years before retiring as
your pension was partially based on received compensation during your last
five years of employment.

Bruce Esser
Physics Teacher Something witty
Marian High School Should go here