COMPENSATION PRACTICES WORKSHEET

II$.$ PROMOTIONS

The Assistant Counsel for Meds Pharmaceutical, Jonas Wells, is an outstanding attorney

and has done excellent work for the company. The General Counsel is retiring and has

recommended to the CEO that Jonas be promoted to General Counsel, surpassing the

current Associate Counsel. The GC acknowledges that while the Associate Counsel has

many years of experience and has been competent in his role, the $GC$ believes Jonas is far

more talented while also being an excellent leader. This would be a four$-$grade jump

which has never been done before in the company, but the CEO believes in the GC$\text{'}$s

judgment and agrees to promote Jonas to General Counsel.

The salary range for General Counsel is $$240,000-$$$300,000-$$$360,000.$ Jonas as Assistant

Counsel has a salary of $$186,000,$ significantly below the minimum of the new range. The

customary promotion guideline is $15\%$ per grade level. This, however, is not a customary

situation since rarely if ever do employees get promoted three grades much less four. An

increase per the promotion guidelines is out of the question for the CEO. The CEO doesn't

want to pay his new General Counsel even at the minimum of the range. He is looking at

this first year as a training year for Jonas and bringing him to the minimum right away is

too high. The CEO does believe however, that within three to five years in the job of

General Counsel, Jonas should have a salary at midpoint, provided Jonas has

demonstrated above average performance consistently after the first year.

As the Vice President of Human Resources, what do you advise the CEO to do so the

approach is accepted by the CEO but also equitable for the incumbent. What should be

the new salary for Jonas Wells and how should that salary be implemented?

Your Response: