How does your external competitiveness strategy support the compensation objectives you set? To support the business strategy of Pursuing expansion by developing innovative new products to strengthen existing relationships, expand into new markets, and broaden geographical presence. This will be accomplished in the following compensation objectives: 1. Control labor costs due to a high labor expense to total expense ratio. (Efficiency) 2. Use incentives to encourage innovation and the development of new, innovative products. (Efficiency) 3. Use incentives to keep your best and most experienced employees. (Efficiency) 4. Distribute rewards in an ethical manner, and share wealth and approval in recognition of individuals' contributions. (Ethics) 5. Maintain employee loyalty by ensuring and communicating fair pay outcomes and procedures. (Fairness) 6. Comply with all federal and state compensation and benefit laws and regulations. (Compliance)