A NEW COMPENSATION PLAN FOR BEST BUY CO., INC.

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A NEW COMPENSATION PLAN FOR BEST BUY CO., INC.

17435. A NEW COMPENSATION PLAN FOR BEST BUY CO., INC. This paper presents a proposal and outline for a new compensation plan at Best Buy Company, Inc., America’s leading consumer electronics retailer. Best Buy has recently revised its overall strategic plan and the proposed new compensation plan is intended to better align compensation strategy with business strategy at the company. The paper begins with a description and overview of Best Buy, including a discussion of its current business strategy. The next section draws on publically available information to provide an overview of Best Buy’s current compensation plan and comparable plans at other consumer electronics retailers. The remaining sections present the outline of a new compensation plan for the company. The compensation design plan addresses the rationale for the new plan, the compensation philosophy, the program components (including base pay systems, rewards/benefits systems, system administration), and potential obstacles to plan implementation. KEYWORDS: compensation systems specialty electronics retailer sales representatives commissions. Written 2005. 13 pages, 35 footnotes, 24 bibliographic sources. 3,124 words.

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