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In the Simple Model of Financial Asset Model Arbitrage, We

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In the simple model of financial asset model arbitrage, we assume that:


Definitions:

External Equity

The fairness of an employee's compensation as compared to what others in the external job market are receiving for similar work.

Job-Based Pay

A compensation strategy that determines an employee's salary based primarily on the specific job or position they hold.

Competency-Based Pay

Pay based on an employee’s skill level, variety of skills possessed, or increased job knowledge

Hay Profile Method

A job evaluation technique using three factors—knowledge, mental activity, and accountability—to evaluate executive and managerial positions.

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