Question

In the old Merck compensation system, if the salary line formula is: control point = $1544 + $4.72*Hay point. How much will a mid-level manager (Hay point =600, compa-ratio = 120%) get paid? Keep one decimal.

Answer 1

A mid-level manager will get $5251.2 salary.

Step-by-step explanation:

Control Point = 1544 + 4.72 x Hay Point

=1544 + 4.72 x 600

= $ 4376 which is the mid-point of salary range in the market.

120% compa ratio means the actual salary given out is (120/100) times the market mid-point

Hence,

Actual Salary = ( 120 / 100 ) x 4376

= $ 5251.2