Performance management compensation

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Performance management compensation

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Performance management compensation

  1. 1. Performance management compensationAs government regulators apply more scrutiny to executive compensation, corporateboards are spending more time reconciling increasing calls for pay-for-performancereforms with their need to motivate and retain chief executives and other seniormanagement leaders.On one hand, public company directors - in particular - must demonstrate reason, purposeand discretion when it comes to protecting the interests of shareholders, customers andemployees. They are feeling increased pressure to show restraint and to reward longer-term corporate performance especially relating to the remuneration of the CEO.After all, given a spate of high-profile media disclosures of stunning CEO pay, equity andseverance packages, the last thing any director wants is to see the head of the boardsCompensation Committee taken to task by activist investors or The Wall Street Journal.On the other, boards must make sense of how regulation and the need to remaincompetitive in the market for top management leadership provides them with the spacethey need to make effective judgments about incentives and rewards.To say that executive compensation is keeping board directors, compensation consultants,executive search consultants and Human Resources leaders busy these days is indeed anunderstatement.Clearly, the focus is on rewarding long-term business performance and applying thelitmus test of reasonableness to CEO employment contracts and pay practices relating tohis or her senior management team.What remains unanswered is the extent to which government, shareholder and mediainterests will provide the margin required to attract, motivate, reward and retain topexecutives at a time when they have more career options than at any time in the past two-and-a-half years.http://performanceappraisalebooks.info/ : Over 200 ebooks, templates, forms forperformance appraisal.

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