Essay : Discuss this statement made by the author: Salary is very important in attracting and retaining executives

1. Discuss this statement made by the author: “Salary is very important in attracting and retaining executives, but it is of little value in motivating them since salary adjustments are usually modest, even for top performers.”
2. What does the author mean and how does this relate to Herzberg’s Two-Factor Theory? “Management should recognize that its pay philosophy in large part determines the type of talent it will attract and keep”
3. Why is recognition more important to executives than pay and competition?

SAMPLE SOLUTION

Journal Analysis
Summary
In this article, Bruce Ellig is talking about the compensation of employees and especially the executive. Ellig states that payment programs of companies are developed in a way that motivates executives to put in more effort and work hard towards achieving the objectives. He proceeds to demonstrate how non-performing executives continue to receive multimillion dollar salaries at the expense of the hardworking administrators who lead well and take risks for the benefit of the company (Atanassov, Kacprzyk, & Sotirova, 2014). Most of the executives are not motivated to work hard…