The Analysis Of The Apple Inc. Compensation And Payment Plan - 1375 Words

The Analysis Of The Apple Inc. Compensation And Payment Plan (Essay Sample) Content: Apple Inc. Compensation Outline Name Institutional affiliation Introduction. A compensation plan is a strategy that is developed by the employers to reward their workforce for the various duties and services they have offered the firm. The compensation of the employees can be done in two ways. First through monetary rewards in the form of salaries, wages, and remuneration. The second form of compensation involves the use of other benefits such as health plans, insurance, among many others. Apples current compensation plan The company’s compensation scheme is run by a compensation committee that is composed of at least three members who act in accordance with the NASQAD rules and regulation; therefore, they cannot take part in the compensation committee of another company. This committee is tasked with the duty of developing and modifying of compensation and incentive schemes as well as revision and approval of awards of the compensation and incentive schemes to run in accordance with the law and the prevailing industrial climate. However, the majority of the employees of the corporation are retailers a fact that has restrained the company from disclosing its compensation strategies publicly. Nonetheless, the word in the streets is that the firm pays its workforce an average of $25,000 annually, which is a rip-off considering the amount of revenue that the firm brings in. The high ranked employees, however, enjoy other benefits, for example, they are allowed to but the company’s products as well as the company’s stock at a subsidized cost (Segal, 2012). In sum, the firm’s compensation strategy is run by a panel of management that control the activities of the firm. The panel consists of three members who are trustworthy and reliable; these three individuals are not affiliated with any other association with regards to recompense committee. The primary duties and roles executed by the remuneration committee are to strategize, create remuneration agendas, assess as well as approve divergent awards that are under the carrot and remuneration plans. Benefits of the consistent compensation scheme Transparency has been one of the strongest pillars in the business activities of apple corporation. The firm promotes transparent and accountable transactions in all its business dimensions. This comprises of all the dealings with the workforce, the suppliers of the company, the clients who use the firm’s services and products as well as other stakeholders who are involved in the business. The company is however against any procedure of judgment with regards to the external performance of the business. The recent years, the compensation rates of the firm have increased significantly a factor that has been attributed to the escalation of the prices of the benefits. Considering that the compensation performance heavily impacts on the income, the general output of the workers as well as the recruitment of the workforce it is important that the compensation plans look promising to the potential candidates as well as the workforce. The firm also aims at promoting personal fulfilmen t of the employees through their compensation while at the same time ensuring that the environment in which the employees are serving in is warm and rather accommodative of all the employees irrespective of their background and ethnicity; the firm also promotes justice and fairness thereby giving the employees confidence when working in the firm Apple’s Pay Structure Apple compensation structure is far better than of most of its competitors Google Inc. included ( Lynley, 2012). The company has clustered its workforce according to their contributions to the company. Each of these clusters receives remunerations that are commensurate with the job as well as the tasks that these employees undertake. The best-earning employees in the company are Art Directors. According to the salaries and remuneration data from Glassdoor, these employees earn an average annual salary of $ 133,664 at the same time the least appreciated employees in the firm are the Mac geniuses who receive an average annual salary of $38,937. Moreover, the company has structured its salaries and remuneration plan in a manner that rewards the top management most. These top officials also enjoy other extra benefits such as the company’s products at a discounted price. This was also backed by a welfare in case some of these top officials were on extended tenure. Under this payment scheme, the executive officials in the company were given annual incentives to help in retaining them in the company The firm's unique corporate culture presents new employees with generous programs which promote the personal development of the employees and makes them want to stay in the firm for a long time. These include gift packages such as transport of the employees to their apartment, moreover, the firm introduced a program that rewarded the employees that were go-getters. The impact of these generous employee compensation plan is what has made the company a global innovation giant. However, the ever-changing commercial climate has sparked uncertainty in the global markets of the products of the firm. There are more and more entrants of new players in the technology industry with comparatively cheaper products, this fact has necessitated the firm to demand for more from the employees and have even gone further to reward the employees more through programs such as the worker recompense and credit plans, which has significantly increased the output of the workers making the firm remain a global giant in as much as the business environment is extremely turbulent recommendations The company needs to uphold good relationship between the firm and its employees. In this manner, the workforce will give back more to the firm. Moreover, skills should also be entertained. Additionally, the firm needs to be conducting a regular appraisal of the performance of the company’s compensation strategy. The compensation committee should compare data that is related to the previous financial periods and the data of the current financial period and weigh it out with the compensation plan to evaluate how effective these compensation strategies are. Moreover, the appraisal will help the remuneration committee to come up with various deductions more so on the effects and impacts of the strategy on the over...