Compensation Plan

4013 Words17 Pages
Total Compensation Plan Design
Macy 's (fictional)

Table of Contents
Executive Summary…………………………………………………………….3
Macy’s Overview………………………………………………………....4
Macy’s business strategy and organizational culture………………………..5
Macy’s Organizational Chart………………………………………………….6
Macy’s Broad Compensation Strategy…………………………………………7
Macy’s Compensation Plan……………………………………………………….8
The Cost of the Compensation Plan………………………………………………..9
Compensation Plan Communication……………………………………………..10

Executive Summary

Macy’s Overview
Macy’s Inc. is one of the nation’s premier retailers operating more than 850 department stores and employing approximately 182,000 employees in the United States. Macy’s takes pride in selling numerous private label
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Entry-level new hires receive competitive base pay, while full-time associates enjoy generous salary options. Workers also enjoy flexible work schedules, paid training programs, and career growth potential. Insurance coverage, health and wellness benefits and future planning benefits also exist for eligible employees. (htpp://www.macysjobs.com/benefits/wealth.aspx)

Macy’s Compensation Strategy Macy’s overall compensation strategy is performance driven and designed to support the needs of their business. They do this by focusing on 5 key areas: * Providing Competitive and Reasonable Compensation Opportunities. Macy’s compensation levels and individual compensation programs are assessed against the market periodically by their CMD Committee, with input from independent outside compensation consultants as needed. Compensation is usually assessed every 3 years at Macy’s and pay data is validated against several benchmarks, including specific pay levels of other large retail and vendor organizations and information from surveys of the retail industry. In addition, compensation of individual executives are reviewed more frequently, depending on business needs. * Focusing on Results and Strategic Initiatives. Macy’s compensation programs are based on measures of business success. They reflect both internal metrics such as sales and cash flow, and external metrics such as customer satisfaction and stock price performance. A portion of the
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