Global Compensation Philosophy: One Brand, 31 Flavors

Stickman 31 flavorsMultinational companies have enough complexities, why add to them? This is a refrain I hear from people who promote “global” programs in which a single tool is used across all regions to help build a corporate culture. For the sake of simplicity, let’s will call this the vanilla plan. In all the years I have been in this industry, I don’t think I have seen a vanilla plan work for more than a couple years. Tons of money can be spent in design and communication, but global markets, regulatory changes, management goals and other factors all change too fast to allow any long-term traction to this type of program. Continue reading

Give Up Your Employment Rights for Equity Compensation

6a00d83451df4569e2017ee6a44e6b970d-320wiThe UK recently unveiled a controversial “share for rights” scheme (plan) that would allow employees to receive tax-exempt company shares in return for giving up common employee rights such as unfair dismissal, the right to request flexible working, redundancy pay and time off to obtain additional job training. Female employees would also be required to give the company at least 16 weeks notice of return Continue reading

CFO Corner: UK Shareholder Spring was Barely a Fling

Stickman UK Shareholder SpringDan Walter, Performensation

In recent presentations I have heard several compensation professionals from the UK refer to their “Shareholder Spring” of 2012. The reference is to the raising of voices from shareholders. While we all love a little hyperbole, I believe that their Shareholder Spring was barely a fling. The UK’s Shareholder Spring led to a lot of posturing, but as of yet, the player and rules of the game are still familiar. Continue reading

5 Best Practices for Driving Conditions and Compensation Programs

stickman icy conditionsSimilar to when we are driving, compensation professionals must be acutely aware of the conditions around us when we want to implement change. When the weather is nice and the roads are dry, we can speed to our destination with confidence that our vehicles will predictably go where directed. When it gets a bit wet, we take a bit more care and slow down.  It may take a little longer, but we know we will reach our destination. The real trick is getting someplace when the roads are icy. Continue reading

They Still Create New Music with the Old 12 Notes, You Can Do the Same with Compensation

stickman 12 notes 5 stavesThe basic scale used in western music incorporates 12 notes.  The scale has only five lives (staves). This combination of a simple structure and limited elements has been essentially unchanged for hundreds of years. Somehow new music is created every second of every day. These limited components have given us Beethoven’s “9th Symphony”, Gershwin’s “Rhapsody in Blue”, John Lennon’s “Let it Be” and literally hundreds of thousands of beautiful, motivational and at times life-changing pieces of Continue reading

Offer the World First and Money Second. “Small Company, Big World”

globeMy 16-month old nephew inspires today’s posting. The other day, while watching a video of him, I couldn’t help be amazed at the vastness o f his world.  This is true both in physical space and size relative to his little body. He lives in a small town in Nebraska, but it couldn’t seem larger to him. I often envision him in twenty years.  This seemingly large world will in fact turn out to be very small. Nearly every adult male in his area works for the railroad or Continue reading

Pay for Performance OR Justification for Compensation? That is the Question…

stack of moneyI have recently done several presentation covering the possible impact on U.S.companies once Management Say in Pay (MSOP) becomes mandatory. Around the world MSOP is usually defined as a shareholder vote on compensation or remuneration practices.  The pending Dodd-Frank bill includes MSOP. The current document calls for a vote on compensation every two or three years.

In most countries with MSOP this vote is non-binding, but it gives voice to a powerful statement on how shareholders view remuneration.  Most of my source materials come Continue reading