Compensation & Strategy:

As a worldwide manufacturing company specializing in high technology products for the aerospace, automotive, and plastics industries, BTVS, Inc has relied on state-of-the-art technology and business innovation for its success over the last several years. BTVS has 12 manufacturing plants in five foreign countries. Its products are sold worldwide through sales representatives and sales offices in 25 countries. Performance information from these plants and offices is received weekly and is summarized monthly at the Los Angeles headquarters.

The company's current bonus compensation plan focuses on giving rewards based on the utilization of capital within the company (i.e., management of inventory, collection of receivables, and use of physical assets). The board of directors is concerned, however, with the short-term focus of this plan.

Some employees believe that the company's current compensation plan does not reflect its stated goals of maintaining and enhancing its global position through innovative products.

Required: Develop a bonus package that considers BTVS's strategic goals and the global environment in which it operates.