Most compensation professionals I know are very earnest in their desire to pay people as well as possible. They attend presentations, watch webinars, and review the latest article and the smart ones even read the Compensation Café. But, many of these same professionals admit a critical flaw that often makes all of their efforts useless....
Executive pay structure involves determine that compensation elements (tools) to be used and the levels or amounts for each. The best way to accomplish this is to first determine a compensation philosophy. This defines what you are trying to accomplish with pay, the basic levels of pay as compared to the market, peer companies to...
Phantom Stock is on the rise. Or, at least the interest in Phantom Stock is on the rise. Over the past five or six years, I have had increasing numbers of executives and consultants ask me about these compensation programs. The context is usually, “I want to reward people for the growth in the company,...
You’re a hard worker. You’re dedicated and passionate about your job. But, promotions and raises have come slowly. Both require credibility. If you want to be credible at your company, you must understand your company. If you work at a publicly traded company your proxy statement is the place to start. I have spoken to...
The 2014 Tour de France is 2276 miles (3664 K). It is a grueling race that covers 21 stages that include mountains, hills and flats. The “winner” is the individual with the lowest total time at the end of the final stage. How they accomplish this goal is very enlightening and applies directly to pay...
I just returned from a conference where “culture” was the buzzword. Over and over industry professionals stressed that your compensation plans must be designed to match your culture. But, what if your culture is exactly what is killing your pay for performance? In June, nearly a year after the crash of Asian flight 214 in...
Say on Pay is the new norm in the United States. Three years of work and we are starting to fall into a pattern. In Europe and much of the rest of the industrial world, it has been around long enough for there to be strong proposals for new reform. The arguments for continued reform...
Often your HR person is also your benefits, recruitment, training, organizational development, problem resolution and party planning resource. Even though pay is just a small part of an HR professional’s expertise, your company should have access to the same experience and expertise as the larger companies you compete with. Why should your company be at...
A February 3, 2014 article by Vince Molinaro discussed the pay package of Tim Cook, CEO of Apple. In the article Mr. Molinaro discussed his ideas on fixing the problem, including having executives refuse bonuses and incentive pay. A discussion followed on LinkedIn and the following are Dan Walter’s thoughts on the topic. Original Article...
Orig question and answers on Quora Dan Walter’s Response Performance-based equity compensation is becoming more common. Usually these awards are given as Restricted Units. There is generally a number of units that vest over time, based on service (you keeping your job). There is then another layer of units that can be earned over a...
