Case | HBS Case Collection | January 1976 (Revised June 1984)

Megalith, Inc. -- Hay Associates (A)

by John P. Kotter

Abstract

In 1969, Megalith centralized its financial and control functions. John Boyd, senior vice president for finance, hired four brilliant young managers to "bring the group out of the stone age." By 1975, this management team had created a near-perfect finance office of 630 employees. But two of the "young stars" have just quit, and Boyd is sure the constraints of salary ceilings are responsible. He talks with a compensation consultant (Hay Associates).

Keywords: Management Teams; Compensation and Benefits; Motivation and Incentives; Problems and Challenges;

Citation:

Kotter, John P. "Megalith, Inc. -- Hay Associates (A)." Harvard Business School Case 476-107, January 1976. (Revised June 1984.)