Compensation Modeling and Scenario Analysis Questions

Covers the creation and interpretation of models that quantify the impact of compensation decisions. Candidates should be able to build scenario analyses that estimate the cost and distributional effects of salary increases bonus plan changes equity awards and rebanding and to perform sensitivity analysis across key assumptions. The topic includes budgeting forecasting and headcount modeling techniques as well as spreadsheet practices for transparent assumptions checks and validation. Strong answers explain how model outputs are used to inform stakeholder trade offs and to support clear recommendations.