This case is designed for an MBA course in management planning and control systems, an MBA course on mergers and acquisitions, an MBA course on strategy implementation, or any class on executive compensation systems. It gives students exposure to executive compensation plans, the design of performance measurement and incentive compensation systems to facilitate the implementation of strategy, and issues that arise in post-merger integration. Significant differences in executive compensation for British Petroleum and Amoco Corporation prior to the merger between the two companies pose interesting challenges to successfully integrating the two executive teams after the merger. Students are asked to evaluate the post-merger executive compensation plan for BP Amoco in light of company’s post-merger strategy, differences in the pre-merger executive compensation plans, and issues surrounding post-merger integration in their preparation and class discussion.
Darden Business Publishing – University of Virginia