Compensation administration is one of the areas of human resource management that is most important because compensation policy that good, programme and their effective implementation is important to get, maintain and develop human resource of the organization get effective decision from them. It involves selection, design, development trend and their programme to implementing compensation policy or incentive through pecuniary reward. Coast determined wage and salary administration as follows: “wage and salary administration refer establishment implementation and strong policy and employee compensation practice. It includes such areas as job evaluation, salary study and wage, analysis relevant organisational problems, development maintenance and wage structure, prepared salary exchange control. Wage payment, incentive, profit sharing, launch change and adjustments, surcharge, compensation cost control and items other related”. Traditional concept wage and salary administration emphasising on the only wage determination and wage structure in organisation settings. In simple words, “compensation administration is a systematic procedure create compensation structure good.”Reward system in contemporary world, reward to performance and success that improve is more than own real achievement. Indeed, when financial crisis show that is global, reward is all for bank because they defend gamble that more reckless and increase risk. Because incentive system disabled, reward perceived as end appreciate that greater than process real winner. Therefore, interest management should be viewed within the context what correct and only reward and what reward that is unbalanced. Point here is reward that should vindicate performance and does not exceed them. What we mean with this good for reward to executive that high for his excellent performance but do not reach where catch up reward, individual will be careful with wind behaviour and bear that are unethical.