Compensation Planning

In profitable times, the worst compensation system looks good. But in years with poor financial performance, even the best compensation system looks bad. There is no one "right" system. All have advantages and disadvantages. Your compensation system should be molded to the culture of the firm. And all compensation systems will, in a real sense, help to mold and define the firm's culture. Remember, your compensation system should reinforce and reward the behaviors the firm values. This section provides resources to help you understand the relationship between compensation and performance, and the various types of systems to consider.