By Michael Glick

This paintings bargains a proof of equipment utilized by dentists to be able to hold the dental workplace secure.

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Competitive pricing analysis (see Figure 5-1) 2. Competitive advantages and disadvantages analysis (see Figure 5-2) The first of these, the competitive pricing analysis, recognizes that the marketplace is the real determinant of the price of a product or service. In order to get started, you must compare the price of the product or service you offer against the competition’s. You should compare pricing on a product-by-product basis or equivalent service offered with three other competitors’ products.

The caveat here is that the goal should be a realistic stretch for the company, say last year’s performance plus 10 percent. These goals are usually set through the budgetary process and should be based on net gains of the corporation. I like to utilize bonus programs as retention programs as well. I recognize the bonus amount each year but stagger the payouts equally over three years; thus, if the employee quits prior to the end of the three years, he or she loses the unpaid portion of the bonus.

As a final reminder, performance-based compensation, especially in public companies, is becoming the key determinant in overall pay plans for executives. Stockholders are forcing compensation committees to consider the growth and profit performance of a company when considering key executive compensation. There have been several situations where stockholder lawsuits have arisen out of improper compensation. I think that performancebased compensation is not only just, but is good for the company in the long term.

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