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A compensation's main purpose is to reward good work. It motivates employees to achieve out of expectations. Ideally, a good compensation package will make a employee feel properly rewarded. It should be in proportion to the personal level of achievement the person felt he or she has achieved. This would be from the employee's point of view.

From the executives' point of view, the compensation package would cost the company as little as possible yet still make the employee feel properly rewarded. Yet it should not make the employee feel fully rewarded, and thus breeding greed. It would make the employee feel rather inadequate and that he or she would need to work harder to get properly rewarded

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Q: What are some items a compensation should accomplish?
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