Some of the most common forms of manager remuneration include salaries, management fees, and bonuses. Other kinds of compensation include health benefits, reimbursement for memberships and entertainment costs, and the use of high-end company property such as automobiles. Manager remuneration may also include other financial compensation such as deferred income, retirement allowances, and death benefits. Some companies will also provide loans for managers.
Salary is one of the least variable aspects of manager remuneration. It is typically static, with adjustments made yearly according to performance and the financial status of the organization. This fixed payment is meant to be the base of all other compensation.
Bonuses are a more flexible type of manager remuneration. They are usually determined primarily by the manager’s personal performance. There may also be certain company-wide benchmarks which serve as an incentive for a higher bonus. Some organizations will use multiple benchmarks to vary amounts from adequate to superior achievement.
Benefits are one of the most flexible types of manager remuneration. Managers typically enjoy the same benefits as much of their staff, such as health insurance and educational opportunities. Some common manager benefits include memberships to clubs for purposes such as fitness, entertainment, and networking. While many of these tend to have personal benefits for the manager, they are also meant to serve as tools for the promotion of the business. Other benefits can include everything from business meals to travel opportunities, depending on the organization.
Determining manager remuneration can be a complex procedure as it must be affordable to the company while providing top-level employees incentives to stay with the business. The goal is to give managers competitive financial compensation, while also providing access to resources that will give them more flexibility, freedom, and satisfaction. It is believed that this system will ultimately result in better prospects for the company.
Many companies will attempt to distribute manager remuneration for the best tax benefit. Using bonuses, deferred payments, and alternate forms of compensation, the company will ensure that managers receive as much of their compensation as possible. This is also a part of an organization’s ongoing effort to keep top-level talent.
Manager remuneration can be fairly static or change dramatically, depending upon the economy, company performance, and individual employee performance. Benefits in particular can fluctuate dramatically, depending upon the needs and resources of the company. Remuneration may also vary as personnel levels rise and the needs of the company evolve.