Components of a Compensation and Incentive System
The following compensation and incentive components can help develop a compensation plan that can attract and retain corporate entrepreneurs who will successfully contribute to the development of the new venture:
• Equity. Part ownership interest in the new corporate entrepreneurial venture or parent company in the form of common stock or preferred stock.
• Bonuses. Money linked to individual or group performance achievements such as sales, profits, and return on investments. These amounts can be fixed, variable, or discretionary.
• Salary increases. Applied in the same way to a new corporate entrepreneurial venture as the existing corporation.
• Career progression and advancement. As opportunities ...
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