Growing Pains (HBR Case Study and Commentary)

Cyrus Maher, CEO of Waterway Industries, thinks he may be facing a human resources problem. Lee Carter is a relatively new employee whose high-powered sales ability has rocketed Maher's sleepy canoe company into unprecedented growth. But Maher has overheard Carter discussing a new job that would offer equity, and he fears her defection is imminent. Maher has begun to reconsider his employees' compensation arrangements, particularly Carter's. As he consults with his banker and with advisers in the industry, he begins to realize that the easygoing culture he created at Waterway may have changed for good. In 96408 and 96408Z, James McCann, Kay Henry, Myra Hart, Ronald Rudolph, Bruce Schlegel, and Alan Johnson offer advice on this fictional case study. THIS CASE STUDY INCLUDES BOTH THE CASE AND THE COMMENTARY. FOR TEACHING PURPOSES, THE REPRINT IS ALSO AVAILABLE IN TWO OTHER VERSIONS: CASE STUDY ONLY, REPRINT 96408X, AND COMMENTARY ONLY, REPRINT 96408Z.