Name Your Price: Compensation Negotiation at Whole Health

953 words 4 pages
Name Your Price: Compensation Negotiation at Whole Health

This case study is about a student Monroe davies who is in his second year at Harvard Business school and Jim Hummer who is the CEO of a company named Whole Health Management. Jim has met Monroe before and knows that Monore is interested in entering the whole health management.
Jim has asked Monroe to design a compensation package for himself as Director Business Operations because Jim wanted to assess how Monroe reacts when faced by unexpected challenges. Jim has sent a template of the compensation Package and asked him to analyze and work on following areas of the package. * Salary * Performance Bonus * Stock Options * Relocation allowance * Benefits.

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2. Since issuing stock more than standard equity plan is somewhat difficult for the company to do so therefore Monore decided to purchase shares according to standard equity plan making it acceptable for both himself and the CEO to approve.
3. Monroe has refrained from purchasing the additional stocks because the issue of affordability as he has not even begins to work in the company.
4. As Monroe is young and in early stages of his career, his focus would be more on spending than saving or long term investment Therefore he would be less interested in purchasing stocks.

Bonus(Based on Performance)
Monroe has determined $62500 (half of his per year salary) as his performance bonus due to reasons as follows.
1. In most organizations a director’s performance bonus is based on half of the yearly salary. This statement is in reference to the structure of performance bonus in National Bank Of Pakistan which is a multinational bank.
2. Monroe is confident that growing company like Whole Health Management would accept his proposal.
Relocation Allowance
The reasons behind Monroe of assigning 3600$ as his relocation allowance are:
1. The rent of an apartment in Cleave ranges from 800$ to 3000$(yahoo realestates). Monroe could have opted for a cheaper apartment but since he would be assuming the high post of Director Business Operation therefore he needs to maintain his status symbol. Therefore he has chosen the most expensive apartments in Cleveland and

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