NAME YOUR PRICE:

COMPENSATION
NEGOTIATION AT WHOLE
HEALTH MANAGEMENT
Group 8 Members
Amit Choudhary MBA21014
Devyani Patel MBA21052
Ratul Das MBA21158
Sanket Waghmare MBA21174
Tilakshaha KangaliMBA21224
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

■ 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
■ 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: Increase revenue ( existing-$10M to $12M) from the contract that he is managing by 15%
• Develop new client business
• Goals: Expand the client base and get 2 more contracts with combined worth of at least $4M
■ NOTE: The bonus of $30000 is proportionally divided on all goals with each role carrying equal
weightage
Relocation Allowance

■ $10000 to relocate to Cleveland; additional allowance to be determined for any future

relocations

■ Reason: From internet cost of living comparison calculators, we found that even with a
30% decrease in Munroe’s salary, he could maintain his standard of living in Cleveland
as it is a less expensive city as compared to Boston. Thus, we have allocated a nominal
amount of $10000 towards movers and packers charges
Continuing Education Stipend, Dues
and Licensures
■ Continuing Education Stipend: 70% of tuition fee for further education, as approved

■ Dues and Licensures: Sponsor(100%) the certifications and other dues and licensures
in future