What Comprises Reasonable Compensation?

Q: What Comprises Reasonable Compensation?

Answer: Reasonable Compensation refers to the level of compensation which is considered “within market range” for a particular position.  However, numerous factors are taken into consideration when determining reasonableness, including, but not limited to:
 
The Individual’s:
·        Education
·        Experience
·        Skills
·        Duties
·        Responsibilities
 
The Company’s
·        Revenue size
·        Geographic location
·        Industry
·        Compensation philosophy
·        Hierarchy
 
The Industry’s
·        Market conditions
·        Availability of talent
·        Influencing economic conditions
 
When determining reasonableness, a detailed market study must be conducted which considers the above factors in order to make a reasonableness determination.