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Development of Value-Oriented Remuneration System of Engineering Personnel for Design Companies of Road-building Complex

Abstract

Development of Value-Oriented Remuneration System of Engineering Personnel for Design Companies of Road-building Complex

K.A. Tsapko

Incoming article date: 10.12.2012

The article examines features of remuneration systems which are traditionally applied in the design companies of road-building complex, and the value-oriented remuneration system which is aimed at forming the economic incentives to maximization of company’s value is proposed. The close attention is payed to substantiation of mechanism of production department’s bonus fund forming based on calculation of free cash flow attributed to the department

Keywords: Remuneration system, design company, value-based management, free cash flow