Develop a compensation proposal for the CEO that would be competitive with offers from rival firms attempting to lure the CEO away.
CASE STUDY
Citation: Cox, M. Z., & Crocker, R. M. (2018). Green Leaf Grocery – Executive Compensation Case Study. Journal of Business Case Studies (JBCS), 14(1), 11-16. https://doi.org/10.19030/jbcs.v14i1.10108
Refer to the “How To Analyze a Case Study” information provided in the Course Information Module.
Here are the questions/issues from the case study your case analysis should address. Your submission should NOT be a question/answer approach, but rather an integrated case study detailing your analysis and recommendations.
Develop a compensation proposal for the CEO that would be competitive with offers from rival firms attempting to lure the CEO away. The compensation proposal should be a “total compensation” package in that it addresses all facets of total compensation (e.g. salary, bonuses, benefits, and perks that are consistent with someone of this stature).
Ensure that the company has a successful IPO and that there is continuity in top leadership for the next five years.
Align the interest of the CEO with the stockholders of the firm.
Reward the CEO for reasonable risk-taking and growth of the firm.
Last, the board has come under criticism from employees and die-hard customers who see the company culture moving away from its early “family firm” roots and becoming more corporate. The board is worried that there will be a negative reaction to what might be perceived as an “excessive compensation plan” by some. They would like to know if you have any creative solutions that might help alleviate that criticism.