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- W3125199103 abstract "This research paper proposes an economic concept and a financial framework to help human resource (HR) managers in marketing firms determine whether their compensation packages are effective. Paper also provides a brief definition of agency theory and discusses fixed versus variable compensation, the significance of variable compensation and how choice of pay plan affects operating leverage and the break-even point. With an illustration, this research describes the advantages and disadvantages of variable compensation and tabulates the optimal balance of fixed versus variable compensation costs. Finally paper provides detailed calculations on the evaluation of the optimal variable pay ratio. Findings of the research shows that decisions about fixed and variable compensation will help to maximize the value of the firm." @default.
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- W3125199103 date "2010-01-01" @default.
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- W3125199103 title "Sales Employees Compensation: An Optimal Balance between Fixed and Variable Pay" @default.
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