pay for performance Tag

Funding for long term incentive plans (LTI's) is handled differently for private companies vs public companies and comes directly off the bottom line. So when and why should private companies consider these "costly" performance incentives for their executives? What executives should be included in LTI's?...

Learn about the benefits and some of the key considerations in using deferred compensation incentives to boost executive and company performance. Discover ways deferred compensation plans can be set up to emulate bonuses, long-term incentives and even equity-based compensation. Read about a retail case study...

By Bertha Masuda Deciding on individual bonus awards is an important exercise to ensure pay for performance.  However, many companies struggle with how to use discretion in finalizing bonus awards.  In a recent Vivient survey of private companies, almost 60% of companies rated the level of...

By Bertha Masuda and Susan Schroeder One of the most important compensation-related activities a company will undertake is creating effective communication plans that explain incentive pay structures. Especially important is helping executives – those most vital to the ongoing success of the company – understand their...

 By Jeff McCutcheon  While perfectly aligned with investors in the short term, “TSR programs may diminish accountability for strategy by rewarding for events unrelated to changes in long-term franchise value.” Paying for performance is assumed to be the objective of most pay plans. A quick read of a handful of proxy statements will likely find the phrase prominently used. The Dodd-Frank act...

By Dave Ryan Aligning Pay and Performance: The Compensation Committee’s Ongoing and Essential Role The strategic needs of any company are many and complex. These needs include developing leaders, balancing performance and retention needs, and creating and maintaining a performance culture. Board compensation committees play an essential role...

By Don G. McDermott Today's compensation approaches, like the rest of the business world, are changing rapidly. As a result, the bridge that connects compensation strategy to the overall business strategy may have been weakened by the frequent shifts that characterize business today. Consider the following scenario:...