Duckworth Industries - Incentive Compensation Programs Case In the current case, Team A examines Duckworth Industries, Inc. - an industrial manufacturer - in order to evaluate its programs compensation of current and proposed incentives. Analysis and recommendations follow. Duckworth Industries, Inc., has several incentive programs for different levels of employees, each designed to address different productivity issues or issues. For plant-level employees, Duckworth has an attendance bonus program to reduce tardiness. For employees up to the shift supervisory level, Duckworth has a quality incentive plan to reward those who ensure high quality of its products and services. Duckworth also has a profit sharing plan for all employees. Profit sharing rewards employees for increasing the company's profitability. Duckworth offers individual incentive plans for all sales and supervisory staff to improve accuracy, turnaround times and sales growth. The annual incentive plan is reserved for senior executives, some of whom also participate in a long-term program. Duckworth has implemented these programs to reward managers who meet certain performance goals, in areas such as cash flow, proprietary product sales growth, direct labor variances, etc. inventory rotation, accounts receivable, gross margins and special individual projects. Duckworth's top executives recently participated in a long-term, five-year management incentive plan — a phantom stock plan tied to the company's growth and profitability over a period of several years. Before considering the economic value-added (EVA) compensation incentive plan proposed in the current case, Duckworth Industries used different information. Performance goals should be re-evaluated annually and set at corporate, business unit or individual goals. A plan that allows management to become “owners” will maximize shareholder wealth and minimize internal conflict. References Industrial Distribution Group (2005). Company home page. Retrieved May 30, 2005, from www.idglink.com/home/home.asp.Kleiner, M. (1992). Incentive pay: Not just for top management. WorkStudy, 41, (2), 16. Retrieved May 30, 2005, from the EbscoHost database.Kunkel, J. G. (2005). Compensation plans and the new accounting rules for stock options. The CPA Journal, 75, (1), 28. Retrieved May 30, 2005, from the EbscoHost database.Savage, M. (2004). Employee stock options: new evaluation responsibilities and planning opportunities. Benefits Quarterly, 20, (3),34. Retrieved May 30, 2005, from the EbscoHost database.