[Grant]

Well it's that time of year where my supervisor/right hand man have our annual review and salary discussion for next year. This guy has been with me for 15 years - hired right out of highschool. He supervises 2-3 emplyees regularly but not everyday. He can run the field operations but has little to do with the administration side of the business. I do consult him when bidding on new work and when considering the addition of new equipment. His job is seasonal in that he has January and most of February off. We are a maintenance and design/build company that grosses about $300k per year. I feel that at $40K salary he is at the top of the pay scale for what he does. I do pay a bonus based on profitability that could add up to $2k to his salary. Every year I remind him that I do value his service but that no one is irreplaceable. I have often even suggested that he consider trying it on his own if he feels undercompesated. After going around and around we always seem to settle on a cost of living increase bases on the consumer price index and our end of year profitabilty bonus (which only I decide). How do you guys compensate your supervisors? Any different ways of doing this in a way that creates incentive? Thanks for yor input.