High executive pay meets tough scrutiny
Article Abstract:
The compensation of executives has lately courted controversy because its rate of increase within a range of 8% to 15% is way above that of an ordinary employee's 4% to 5%. Aggravating the situation is that such increases in executive pay are made even during times of declining corporate showing. There is, thus, a clamor from various sectors including the Internal Revenue Service, shareholders, Congress and consumer organizations to peg executive pay with performance. Such a compensation plan would give as much emphasis to the interests of shareholders as to the salary needs of managers.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1992
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Using incentive compensation to create shareholder value
Article Abstract:
Management incentive plans are typically too tame in that they do not motivate managers to take more risks and provide them with exceptional rewards for doing so. Cash bonuses and stock options are not sufficient motivational instruments to compel managers to do more for the organization. As a consequence, the performance level of managers does not give full justice to the concept of shareholder value or investment rate of return. The best incentive plan, therefore, is one that makes managers feel like owners of the company.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1992
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New patterns in executive compensation
Article Abstract:
Long-term incentive plans must be designed to accomodate company, employee and stockholder interests. Compensation managers should consider the effectivenes of the current plan, competitor incentive plans, the conceptual framework, the employee eligibility and future stock market prospects in creating incentive plans. Companies which consider stock ownership vital must also evaluate the effectiveness of internal planning, costs and shareholder perceptions on the new plan.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1992
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