COMPENSATION SYSTEM IN A PRIVATE COMPANY
The Company is a privately owned service company, providing specialist additive services to the world’s oil traders. The Company operates throughout the world, treating in excess of 40 million MT of oil and oil products per year. The Company provides 24/7 additive injection services to its clients, and is an industry leader having the greatest geographical coverage, additive stocks, and equipment. The goal of the Company is to provide practical solutions to customers in a fast, effective, and efficient manner.
The Company employs a total of 80 people. The Board of Directors consists of 4 owners. There are 4 Divisional Mangers based in the main operational areas. The remaining employees are base operators. Accounting, supply, and transportation services are outsourced.
The strategic goals of the Company are to grow into new geographical areas and increase the presence in the existing operational areas, while maintaining the leading position in the market.
As this is a private company, the owners take on most of the responsibility for the way the company is run. The owners are involved in the day-to-day operations providing general guidance and direction to all other employees. Hard working and driven, they maintain close control over the operations and set an example of dedication for the rest of the Company. The key is having instantaneous communication flow between all structural levels of the Company. Company mobile phones are provided to all employees in order to ensure these connections. Also, strong emphasis is on maintaining trust and openness among all structural levels.
The compensation system can be divided into two main sections: individual performance based and profitability of the Company. The general policy of the Company is that each division has to maintain its profitability and contribute to the overall success of the Company. The total annual compensation is...