1. Compare the impact of incentive pay on the total compensation of Wal-Mart’s CEO and the company’s average workers. Does the difference in the way pay is structured at these two levels make business sense? Why or why not?
2. How do you think Wal-Mart’s store workers would judge the equity of the difference between their total compensation and Mike Duke’s total compensation? Do you think the difference would motivate them to work hard to move into management positions? Why or why not?
3. What, if any, changes would you recommend that Wal-Mart make to its policies for incentive pay so that its compensation better supports its strategy?
Considering the large difference in the salary incentive pay on the total compensation of Wal-Mart’s and the company’s average workers, it has led to a greater impact within the organization as well as the workers. The salary being received by CEO around $1.3 million makes him 82nd highest paid employee of the United States, at the same time the average working receiving around $14 an hour which was not even sufficient to earn a good living.
As far as the various business levels is concerned up, the two levels of difference on the basis of pay like that of CEO and the average workers, it actually makes up a huge difference with respect to the working and functioning of the organization. The pay at higher level of CEO is basically done keeping in mind the various grow