Pay executives for their real performance
Article Abstract:
Executive compensation must take into account the return or shareholder value that an executive's performance brings to the corporation. Earnings-per-share, return on equity and growth from earnings do not present an accurate measure of the executive's performance and may create business problems in decision-making. Economic value added gives the most accurate measure of the real worth of executive contribution to shareholder wealth. This measure considers business risk taken in capital employment.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1992
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Linking quality with employee rewards: an evolutionary tale of a Baldrige Award winner
Article Abstract:
Universal Card Services Corp. became a Malcolm Baldrige National Quality Award winner after only two years of operations. Its innovative concepts such as customer advocacy, customer service quality and customer value added remain crucial in industry. Universal's success is attributed to a novel incentive compensation scheme which boosted employees' focus on quality.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1995
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