Name Your Price Essay

Name Your Price: Compensation Negotiation Whole Health Management Group 6 Abhisek Jha 10PGHR04 Annesha Pramanik 10PGHR08 Kunal Dayani 10PGHR21 Priyanka Gupta 10PGHR30 Ria Ghosh 10PGHR42 Tanu Mehta 10PGHR51 Base Salary Status: $100000 per year paid semi monthly †¢ Reason: Since Whole Health Management is a mid cap company and it wishes to pay competitive package at HBS , we have chosen median base salary of health sector from exhibit 6. †¢ Also, since the CEO, Jim Hummer is willing mentor and provide a lot of challenging opportunities to Munroe, which he might not get anywhere else so he would be ready to compromise with the monetary benefits and not choose 75% base salary Stock options Stock options: Options to purchase 10000 shares at $2.7 per share according to vesting schedule †¢ Reason: It is the standard equity plan for incoming executives †¢ Also since, Jim mentioned in exhibit 2, that the company might grow 3 folds by year end 2006, Munroe would want to invest in the firm’s equity †¢ And Jim also mentioned that the organic growth strategy may generate many opportunities for Munroe, being in a leadership role he would like to have more stake in the company Bonus Bonus: Up to $30000 based on agreed upon goals †¢ Reason- Since the median total additional compensation given in exhibit 6 is 30% of the median base salary The agreed upon goals would ascribe to 3 roles specified: †¢ Manage client relationships and contracts †¢ Goals: a) Repeat business from existing clients of the three contracts given to Munroe †¢ b) Customer satisfaction Index > 90% †¢ Grow existing client contracts †¢ Goals: a) Increase revenue ( existing-$10M to $12M) from the contract that he is managing by 15% †¢ Develop new client business †¢ Goals: a) Expand the client base and get 2 more contracts with combined worth of atleast $4M NOTE: The bonus of $30000 is proportionally divided on all goals with each role carrying equal weightage Relocation Allowance Relocation Allowance: $10000 to relocate to Cleveland; additional allowance to be determined for any future relocations †¢ Reason: From internet cost of living comparison calculators we found that even with a 30% decrease in Munroe’s salary, he could maintain his standard of living in Cleveland as it is a less expensive city as compared to Boston. †¢ Thus we have allocated a nominal amount of $10000 towards movers and packers charges Source for cost of living comparison: http://www.bankrate.com/calculators/savings/moving-costof-living-calculator.aspx Continuing Education Stipend and Dues & Licensures Continuing Education Stipend: 70% of tuition fee for further education, if approved Dues and Licensures: Sponsor(100%) the certifications and other dues and licensures in future THANK YOU