Case: Name your price: Compensation Negotiation at Whole Health Management(A)

1. You are required to complete the salary sheet highlighting three important things:
Fixed salary, Variable Component, ESOP

Fixed salary: From exhibit 6, Salary of $1,20,000, which is slightly more than the median
base salary for other services- Health-related (Business operations)

Reasons: Salary more than the median base salary of the health sector is chosen from exhibit
6 because Monroe belongs to an Ivy League college and this job would thoroughly exploit his
skills to the maximum. Also, as this job will provide opportunities, Monroe would
compromise with the monetary benefits during the initial phase as a high salary might impact
his productivity and not choose a 75% base salary

Variable component: Upto $30,000 based on agreed-upon goals.

Reasons: From Exhibit 6, the additional variable component accounts for the bonus, which
will be remitted to the employee when certain KPIs are met

ESOP: Options to purchase 20000 shares at 2.7 per share according to the vesting schedule.

Reasons: Incoming employees are awarded this scheme of buying stocks after completion of
a year. The projected growth of the company says that it will grow 6 folds.

2. How would you like to communicate the same to the Employer?

As this candidate is highly looked upon by the CEO for this role, the proposed salary
structure might be approved for Monroe. To communicate this to the employee, a formal
meeting can be held, understand his expectations. The proposed salary is reasonable hence
the justification of each component can be discussed with Monroe on one to one basis.

3. What is your analysis of the Entire case?

In this case study, Monroe Davies, a student in the second year at Harvard Business school and is
appointed by Jim Hummer, CEO of Whole Health Management for a crucial position of Director,
business operation.
Jim was well aware of Monore’s interest in the whole health management group. Monroe has asked
Jim to design a compensation package for this job role as an attempt to check Jim’s ability to react to
unexpected challenges.
This salary design asks Jim to set a cap on Salary, Performance Bonus, Stock Options, Relocation
allowance, and Benefit for his desired package.
Alongside another challenge, while deciding this salary package comes across for Jim in form of
being extremely reasonable while setting a value. This is because of the letter Jim has set across,
which clearly states the expectations for Monroe and what benefits he can reap.

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As this is a highly senior position, it is extremely essential to understand what exactly the Monroe is
looking for in this role. It is essential for him to stay motivated and at the same time not fall prey to
lethargy.
Asking for Monroe’s expectations in this way, clearly indicates that Jim wants to make sure that
Monroe’s needs are met and also his expectations are compromised.

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