The differences and similarities of director’s compensation incentives in 4 companies and how to impact the whole company

Abstract

Every company in the world that wants to achieve good profits or successful must have some rational policies to encourage employees to exert more effort. This article focuses on research the policies of 4 companies which are Walmart, Dollar Tree, Dollar General and Target, how to encourage their directors to make more efforts and make the company more successful. Specifically, analyze their annual financial statements and their companies’ policies toward employees to see what helps employees trust the company more and to working hard. Also, put forward the corresponding shortcomings of the company compared with other companies how to do better. The results show that the company should pay more attention to the compensation incentive of directors. Only when the responsibilities, powers and interests of directors are well planned, it can the activity of the whole company be well adjusted. Thus, suggest that every company should improve the board structure in the early stage. Only in this way can ensure that the subsequent operation of the company is efficient.