Answer 1:

Name Your Price:Compensation Negotiation Whole Health Management Group 6 AbhisekJha 10PGHR04
Annesha Pramanik 10PGHR08 KunalDayani 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...

Answer 2:
Name Your Price: Compensation Negotiation at Whole Health

This case study is about a student Monroe davies who is in his second year at Harvard Business school and Jim
Hummer who is the CEO of a company named Whole Health Management. Jim has met Monroe before and
knows that Monore is interested in entering the whole health management. Jim has asked Monroe to design a
compensation package for himself as Director Business Operations because Jim wanted to assess how Monroe
reacts when faced by unexpected challenges. Jim has sent a template of the compensation Package and asked
him to analyze and work on following areas of the package. * Salary

* Performance Bonus
* Stock Options
* Relocation allowance
* Benefits.

In this case we are required to design the ideal compensation that is acceptable for both Monoroe Davies and the
CEO Jim Hummer. Jim has provided Monore with a template of the compensation package and asked to fill
amounts which he thinks are acceptable in following areas of the package. * Compensation

* Stock options
* Bonus
* Relocation Allowance
* Continuing Education stipend
We will discuss regarding how we allocated the cash in the areas mentioned above. Monroe
DaviesCompensation Package|
Director Business Operations|

This study source was downloaded by 100000849758303 from CourseHero.com on 11-02-2022 10:47:16 GMT -05:00

https://www.coursehero.com/file/22507580/323180048-Name-Your-Price-Answers/
 Compensation| 125000$ per year, paid semi monthly|
Status| Full time|
Stock options| Options to purchase 10000 stocks at $2.70 per share| Bonus| 62500$|
Relocation Allowance| 3600$ to relocate to Cleveland from HBS| Fringe Benefits|
Paid Time off:|
Vacation| 120 hrs/yr|
Holidays| 80 hrs/yr|
Sick Leave| 48 hrs/yr|
Personal Time| 16 hrs/yr|
Insurance:| |
Health Insurance| Based on premiums|
Dental Insurance| Based on premiums|
Vision| Based on premiums|
Life Insurance| Paid term Life ($50000)|
Long-Term Disability Insurance| Paid (60% of base pay)|
Social secuirty| Paid|
Worker’s Compensation| Paid|
State and...

This study source was downloaded by 100000849758303 from CourseHero.com on 11-02-2022 10:47:16 GMT -05:00

https://www.coursehero.com/file/22507580/323180048-Name-Your-Price-Answers/
Powered by TCPDF (www.tcpdf.org)