What is compensation?

The study found the existence of a positive relationship between education and experience levels within an organization, with the salary of the executive staff. Managerial performance has a positive relation to compensation, and the two measures of such performances used by organizations are fundraising and cost-effectiveness, especially when deciding the CEO's compensation levels. The study also finds that executive-employee level factors such as intrinsic motivation could have a negative impact on the compensation levels of an organization's staff, as intrinsically motivated individuals may accept wages for their efforts that are lower than the norm in the organization/sector.