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Essay text:
The following recommendations are made to revise the current management compensation and evaluation system.
One of key issue identified was the complexity of TECO’s value added measure of performance calculation. The complexity of the value-added method is due to the lack of transparency. The first factor is the lack of transparency for compensating shareholders and employees. The relation between productivity and bottom line results will be addressed through more relevant variables for the income split calculation. Variables in the revised income split calculation will include: productivity, labour market conditions, and significant changes in the task environment...
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