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Executive Investigator
Tracking and Analyzing Executive Salaries, Bonuses, and Perks
# Thursday, September 11, 2008
A new paper, "Beyond the Boardroom: Considering CEO Pay in a Broader Context," argues that excessive CEO pay is bad for a company (not surprising), but the authors also give suggestions for aligning pay and performance throughout company ranks:

  • As many employees as possible should be part of an organization-wide, pay-for-performance model; merit increases should allow for significant differentiation between employee and company performance.
  • The organization's bonus plan generally should use similar metrics for both employees and the CEO; the funding percentages should be somewhat alike.
  • Stock incentive plans should stem from board-level decisions over who is eligible, but participation should be limited to top performers.
  • Limits should be placed on special awards and perquisites not linked to performance.

Thursday, September 11, 2008 4:22:27 PM UTC  #    Comments [0]  |  Trackback
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