MGMT1135 Study Guide - Final Guide: Larry Ellison
Document Summary
An annual bonus is a significant component of total compensation for many jobs. Many companies now routinely reward production employees with bonuses when profits improve. Organization-wide programs that distribute compensation based on some established formula centered around a company"s profitability. E. g. , 88. 8% of larry ellison"s pay comes from cashing in share options previously granted based on company profit. Appear to have positive effects on employee attitudes at the organizational level. Employees have a feeling of psychological ownership. Profit-sharing plans are organisation-wide programs that distribute compensation based on some established formula designed around a company"s profitability. When executives earn hundreds of millions of dollars in pay (such as. It almost all (88. 8% in ellison"s case) comes from cashing in share options previously granted based on company profit performance. Not all profit-sharing plans need be so grand in scale. 17, started his own lawn- mowing business after getting a mower from his uncle.
