COMPENSATION AND BENEFITS 8
invest on share in the company so that they can embrace it as their own and also so that
they can enjoy some benefit on one side can pose danger to other shareholder while some
associated may work as insider trade and gain wealth at the cost of other shareholder
Novartis Group setting up compensation and benefit packages, process involves
participating in various benching surveys that provide comprehensive information on
levels of salary, short term incentives and long term incentives. The standardizing group
of firms mostly included it competitors such as Syngen, Abbott, AstraZeneca, and Roche.
It also includes other companies outside pharmaceutical companies with size, stature,
scope and magnitude of complexity like that of Novartis.
Comparing the Novartis compensation and benefit packages with some of it
competitors such Syngen Group; like Novartis group strategy, Syngen Group
compensation strategy is based on three elements; fixed compensation, variable
compensation and benefit. Fixed compensation is inform of basic salary, variable
compensation is inform of short- term incentives and long term incentives like in the
Novartis Group. Short term incentives are based on the achievement of financial results
and individual performance in Syngen Group. This is the similar case in Novartis
The fixed compensation in Syngen is set by reference to the size and scope of the
job, skills experience and performance of the individual, level or grade to which the job is
assigned and external market value of the job (Syngen report, 2010). This is the same
ground that Norvartis group use to establish fixed compensation of the associates.
However, in the case of Syngen compensation strategy, it has a compensation strategy of