The purpose of this report is to use the compensation system we previously developed in Phases I and II to pay people, develop plans that reward performance, add benefits into the mix, and evaluate these results. First we will look at performance-based-pay as a policy for recognizing employee contributions. Performance-based-pay is a pay plan that varies with some measure of individual or organizational performance, such as merit pay, lump-sum bonus plans, skill-based pay, incentive plans, variable pay plans, risk sharing, and success sharing. It is basically a pay plan that moves away from the traditional base pay and across-the-board increases, and focuses more on factors of performance that can increase overall productivity for a company. Performance-based-pay plans can be very effective in creating a positive impact in performance of both employees and a company as a whole, but only is the plan is designed well. In order to be successful, it is crucial that the performance-pay plan be designed to support FastCat’s business strategy and compensation objectives. To design this pay-for-performance plan, we will recommend a specific policy plan that is tailored to FastCat’s goals towards success. We will compare different performance-based plans, which include individual vs. group incentives and merit vs. incentive pay, to see which combinations will help FastCat compete more effectively.…