Compensation strategy

• addresses the role compensation should play in an organization.

• forms the underlying structure for the compen¬ sation plan, including consideration of employees’ control over performance output.

^ employees’ level in the organization.

^ employees’ opportunities to gain feedback and adapt performance.

^ alignment of organizational mission, goals, and objectives with the performance mea¬ surements and employee rewards.

3^ tax and ethical implications of compensation. LO.1