Exam 6: Formulating the Reward and Compensation Strategy

Golden parachutes generally assure large severance payments for dismissed executives.

In developing a compensation strategy,the two key questions that must be addressed are: "How much is to be paid?" and "When should it be paid?"

In which situation would a "lag the market compensation strategy" be applicable?

Which variable in executive compensation packages accounts for the majority of the value associated with executive pay in Canada?

As a human resource compensation specialist,you are recommending that your company compensate entry-level factory workers 10 percent below market,while paying 10 percent above market for engineers.What type of compensation policy are you recommending to your organization?

A hybrid compensation-level strategy is one that varies across which of the following?