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Regis University Business Express Management Executive Compensation Memorandum
Assignment: Management Briefing #5 – Issues/Factors Regarding Executive Compensation: Refer to the Total Rewards Project memo for Business Express and write a management briefing summarizing the key issues and factors involved in establishing an executive compensation plan.
Business Express: Congratulations on your appointment as VP of Total Rewards for Business Express. Business Express is an internet office supply company headquartered in Denver Colorado. They have no brick and mortar outlets and derive all of their sales through internet, telephone or sales rep generated orders. Business Express has customers throughout the continental US and Canada. While most customers are business purchasing supplies for their organization about 25% of Business Express sales come from individual consumers.
Business express was founded in 2005 and has grown at double digit annual rates. When the company was founded the HR processes including compensation were not well thought out, defined or delivered. As a result, there is no clear rationale or structure to what employees get paid and whether their compensation package is competitive from both an internal and external basis. In addition, there is a question as to whether the pay practices conform to Federal and State Law. Senior management has concerned that the compensation strategy does not engage employees, does not align and drive performance consistent with company goals and objectives and does not focus employees on customer engagement.
