Your Turn Sled Dog Software Software engineers directly affect the success of many start-up companies. Suppose you are fac- ing a clean slate: A group of investors is about to create a new start-up, a specialty software company based in Laramie, Wyoming. These investors have hired you to help them determine the marketing manager's pay. What would you advise? Consider the information in Exhibits 7.3, Exhibits 7.4, and Exhibits 7.14 in making your recommendation. 1. What policy regarding external competitiveness would you advise? List the options and the pros and cons of each policy option. Offer the rationale for your recommendation 2. What forms of pay and in what percentages would you recommend? Again, offer your rationales. 3. Consider the theories and research presented in this chapter. Which ones did you use to sup- port your recommendation? 4. List three pieces of additional information you would like to have to refine your recommen- dation. Explain how this information would help you. 5. Finally, would you physically locate all the actual software development in Laramie? What if any other options would you consider? Bonus 113% Perquisites 122% Stock Options Base Salary Benefits 79% 9596 10396 EXHIBIT 7.14 Dashboard: Total Pay Mix Breakdown vs. Competitors* 100 90 110 120 80 130 70 60 140 150 50 Total Compensation 102% *100 - Chosen market position, e.g., market median 204 Part Three External Competitiveness: Determining the Pay Level Company A Total Compensation = $112,349 EXHIBIT 7.4 Two Companies: Same Total Compensation, Different Mixes Benefits 16% Bonus OS Options 05 Base 849 Company B Total Compensation = $112,748 Benefits 17% Options 13% Bonus 6% Base Market Benefits 20% Options 7% Bonus Base 67% EXHIBIT 7.3 A Single Company's Market Position May Differ Depending on whether Comparing Base Pay or Total Compensation Base Pay 30% 25% 20% 15% Overall percent of market 10% 5% 0% -5% Engineer Engineer Mgr. Marketing Market. Mgr. Office Technician Total Compensation 15% 10% 5% 0% -5% Overall percent of market -10% .-15% -20% -25% -30% -35% Engineer Engineer Mgr. Marketing Market. Mgr. Office Technician