Mashable.com posted a recent article titled “Top 10 U.S. Cities With the Most Satisfied Employees”. The data regarding compensation is particularly interesting. Using a 5 point scale where 5 = Very Satisfied and 1 = Very Dissatisfied, respondents ranked their satisfaction with their compensation. WE DID IT! We now have evidence that compensation is not a differentiator…anywhere. Oops.
Employees in the top 50 US metro areas are averagely satisfied by their pay. Scores for 48 locations ranged from 3.0 to 3.3. Only Washington Continue reading
Recently a lawyer mentioned to me that he had decided to utilize more basic executive plan designs, even when they might not be as good a fit for a specific client. When asked to explain he said that it was too hard to communicate complex plan designs when board members and shareholders demanded something they could understand quickly.
He said the ironic part was that shareholders then complained when executive pay was too high, or ineffective at retention, or paid out large amounts at severance. The disconnect between what was needed and what the shareholders understood was just too big.
Now, of course, this isn’t the case at every company. But with there being so many issues and details to review during proxy season, a simple executive compensation plan is certainly attractive. And, simple approaches are often more than enough to accomplish the goals of many companies. Even when pay is simple, the misunderstanding between shareholders, boards and executives can persist. Perhaps its just a matter of perspective. I would love to know what you think about this issue.
In our world of sound bites and summaries, statistics are playing an increasingly important role. They are the basis of infographics. They are used in catchy headlines. They provide support for arguments, both real and imagined. They also provide ammunition for the ongoing wars about compensation, engagement and more.
The real question is should they have this power?
It’s that time of the year again. Proxy season is wrapping up. You are probably working at one of the 98% of public companies who passed their Say on Pay vote with flying colors. Or, you work at one of the 100% of private companies that don’t worry about it. Polls and surveys usually show June and July as the slowest months of any compensation professional’s year. This is especially true for those who focus on executive compensation.
This post lays out when you may want to focus on some of the high priority executive compensation topics that must be tackled every year. You may find that making your June and July just a little busier, will make December through March so much easier.