| Once
you are invited to be an employee, you enter a unique
compensation plan. You may need to think about all of
the elements of this plan before it becomes really appealing.
There are essentially five elements: (1) base, (2) a standard,
(3) bonuses, (4) a cap and (5) benefits.
Base:
The base, approximately equal to minimum wage, at this
point is $7.50/hr. Every employee earns this base. There
are no benefits attached to the base.
Standard:
There are a number of components to standard pay. (a)
approximately 10% below whatever is standard in the industry,
(b) ability to buy at 20-60% below retail, (c) specific
benefits, (d) a reduction factor during times of economic
distress and (e) a production level equal to or better
than standard in the industry.
Bonuses:
based on a production level greater than standard in the
industry. May consist of cash and benefits.
Cap:
At this point everyone's salary (cash) is capped at $50,000.
Benefits:
Cafeteria style benefits are unlimited and based on achievement.
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