The owner of a firm is considering a change in how she compensates top managers. Last year, she paid him a fixed salary

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The owner of a firm is considering a change in how she compensates top managers. Last year, she paid him a fixed salary

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The Owner Of A Firm Is Considering A Change In How She Compensates Top Managers Last Year She Paid Him A Fixed Salary 1
The Owner Of A Firm Is Considering A Change In How She Compensates Top Managers Last Year She Paid Him A Fixed Salary 1 (40.68 KiB) Viewed 40 times
The owner of a firm is considering a change in how she compensates top managers. Last year, she paid him a fixed salary of $90,000 and her store had $1.08 million in sales. She is now considering a change so that the manager will be paid a fixed salary of $38,000 plus 3.5% of the firm's sales. She estimates the firm's sales will be $1.45 million. Will the new compensation strategy successfully align the goals of the manager with the goals of the owner?
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