Until recently, Family Dollar, a fast-growing and profitable 6,200-store, FORTUNE 500 retail chain had a limited internal pay structure as well as limited central control oversight for its compensation practices. Founder Leon Levine had surrounded himself with people he knew well, and he let them reward their people as they saw fit. Many employees, including lower-level workers, got stock options (and many employees were well aware that their pay was beyond what the market would bear). With Hay Group's help, Family Dollar redesigned its total compensation structure to accomplish its objectives while limiting overall compensation costs to a slight rise in the first year. Family Dollar makes better use of its compensation budget than it did before Hay Group helped build structure into the jobs. And today, Family Dollar managers have rewards that are tied to performance measures.