Management Incentive Compensation Plans
Article Abstract:
A brief summary of the book, Management Incentive Compensation Plans, by Stephen Butler and Michael Maher. After extensive library research and field studies involving seven private enterprises, the authors identified the components of mangers' incentive compensation plans, the purposes of such plans, and upper management attitudes toward such plans. Many companies are restructuring management incentive compensation plans. The redesigned plans reflect declining profit levels, less discretionary administration, stronger correlations between performance and payment, and payment of incentives despite lack of profitability. Two of the study's conclusions are that short-term incentive plans are more effective than long-term plans, and that compensation plans should reflect corporate cultures.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
What is reasonable compensation in closely held corporations?
Article Abstract:
Reasonable compensation is arguably one of the most controversial tax issues facing closely held corporations where only a few persons act as both shareholders and employees of the firm. Several factors related to reasonable compensation issues have emerged from various judicial decisions since 1990. Some of these factors include the qualification of employees, salary distribution to shareholders, business size and complexity, nature, extent, and scope of actual work, and current economic conditions faced by the corporation. Owners and managers of closely held corporations are recommended to adopt planning strategies to avoid dividend status and recognize which factors are more critical in determining reasonableness.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
Providing real-world financial support to sales
Article Abstract:
R.J. Reynolds Tobacco's Finances department has instilled some aspects of the 'real world' in its support of the company's marketing and sales goals. Central departments in the company have on-site financial service teams. The teams offer financial services that are customized to fit each department. The finance department has also created the variable incentive program and the electronic funds transfer program. These programs have increased cash flow and improved the management and control of the balance sheet.
Publication Name: Management Accounting (USA)
Subject: Business, general
ISSN: 0025-1690
Year: 1989
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: A portfolio approach to risk reduction in discretely rebalanced option hedges. The effects of the sample size, the investment horizon and market conditions on the validity of composite performance measures: a generalization
- Abstracts: Managing two fits of strategic human resource management. Development and application of a model of personal control in organizations
- Abstracts: Bank involvement with export trading companies. Competitive strategy and flexible manufacturing: new dimensions in high-technology venture-based economic development
- Abstracts: Management imperatives for the year 2000. Hybrid organizational arrangements: new form or transitional development?
- Abstracts: More NAA student chapters needed. What are the principles in construction accounting? Accountants television network