Chapter 1 - Introducing the Pay Model and Pay Strategy Troubled Asset Relief Program which included restrictions on executive pay designed to discourage executives from taking * unnecessary and excessive risk." Compensation is a major part of total cost, and often it is a single largest part of operating cost. 1) Society a. Some people see pay as a measure of justice b. Laws and regulations aim to eliminate the gap between male/female earnings differentials C. Benefits may also be seen as a reflection of equality or justice in society 1. Employers spend about 44 cents for benefits on top of every dollar paid or wages and salaries 2. Small employers are much less likely than larger employers to offer health insurance to their employees d. Different standards in different countries e. Job losses in a country is partly a function of labor costs 1. People in the United States worry about losing manufacturing jobs to Mexico, China and