FastCat has five executive-level positions which are described in the table below. Currently, FastCat does not include these jobs in its compensation structure, but simply adopts a market pricing approach using data from an outside compensation consultant regarding their salaries. These jobs were created about two years after FastCat was founded when the owners realized that they needed a more professional management team to run the business operations, so that the owners could focus more on developing technology. Other than the balanced scorecard bonus described in Phase III, FastCat does not pay any additional bonuses or perquisites to its executives.

Sonja Elian, one of the founders and a Senior Fellow at FastCat, along with the other two owner/founders believe that more of the senior executive's pay should be performance-based, with emphasis on both individual and company performance. Sonja is the only founder who currently works at FastCat and owns 24.5 percent of FastCat's stock. The other owners are Leslie Glass, a former Senior Fellow who also owns 24.5 percent of FastCat, and Tony Bello, who owns 51 percent of FastCat and has been its chairperson since the company's formation eight years ago. FastCat is currently a private company but all three owners believe that if the company is successful, it is likely to be taken public in a few years and that they will become very wealthy. Thus, they have made it clear that they do not want give up any of their ownership in FastCat.

Address the following in your report:

As the compensation and benefits expert,

1) what types of executive compensation would you recommend for the CEO and the four other executives(see the attached table)? Be specific in your answer and include the long-term compensation 

2) Why do you think your recommendations make sense for FastCat and how will they help achieve FastCat's strategy?

Executives of FastCat and salaries for prior three years  

Sameer Patel, CEO  $235,000(2017) $255,000(2018)$280,000 (2019)

Chris Reilly, President and COO$175,000(2017)   $190,000(2018)$200,000 (2019)

Rene Johns, Vice President of Finance and CFO    $160,000(2017)$175,000(2018)$190,000 (2019)

Ronny Vance, Vice President, Sales & Marketing  $155,000 (2017)$170,000 (2018)$185,000 (2019)

Pat Smith, Vice President, Human Resources       $130,000 (2017)$145,000 (2018)$150,000 (2019)

Answer rating: 100% (QA)

1 I recommend that the CEO and the four other executives receive a mix of salary and bonuses that ar... View the full answer