After studying this chapter, you should be able to . . .
- Identify and explain the types of management compensation
- Identify the strategic role of management compensation and the different types of compensation used in practice
- Explain the three characteristics of a bonus plan: the base for determining performance, the compensation pool from which the bonus is funded, and the bonus payment options
- Describe the role of tax planning and financial reporting in management compensation planning
- Apply the different methods for business analysis and business valuation