Megalith Inc. — Hay Associates (A)

Case Analysis

In 1969, Megalith centralized its financial and control functions. John Boyd, senior vice president for finance, hired four brilliant young managers, “bring the group from the Stone Age.” By 1975, the management team had created an almost perfect tax office of 630 employees. But two of the “young stars” just ended and Boyd is that the limitations of salary ceilings are responsible. He speaks with a compensation consultant (Hay Associates).

In 1969, Megalith centralized its financial and control functions. John Boyd, senior vice president for finance, hired four brilliant young managers, “bring the group from the Stone Age.” By 1975, the management team had created an almost perfect tax office of 630 employees. But two of the “young stars” just ended and Boyd is that the limitations of salary ceilings are responsible. He speaks with a compensation consultant (Hay Associates).
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from
John P. Kotter
Anne Harlan,
John A. Seeger
Source: Harvard Business School
14 pages.
Release Date: 1 January 1976. Prod #: 476107-PDF-ENG
Megalith, Inc. – Hay Associates (A) HBR case solution