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?