What is reasonable executive compensation?
Article Abstract:
Congress and various regulatory bodies are looking for ways to restrain companies from paying excessively high executive salaries. The market average is often proposed as a reasonable level for executive pay, but companies cannot attract or retain talented executives if they are prohibited from giving better-than-average pay. It is suggested that the power to determine executive pay should be left to the board of directors, which will make decisions based on executives' responsibilities and impact on financial results.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1995
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When does market competitive pay become unreasonable pay?
Article Abstract:
The reasonableness ceiling for executive compensation should be based on central tendency measures or compensation theory rather than the 110% ceiling imposed by the Defense Contract Audit Agency (DCAA). The DCAA maintains that company revenue is the best determiner of executive pay. However, company revenue loses its reliability when its correlation with executive compensation is made within certain revenue buckets.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1996
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Managed cost strategies: the path to competitive advantage
Article Abstract:
A managed cost strategy is more effective than traditional incentive pay plans. It enables employers to pay for value and place a percentage of each employee's base pay at risk. The managed cost approach also emphasizes on employee motivation and promotes cost efficiencies. It can be successfully managed by implementing programs based on value and risk.
Publication Name: Journal of Compensation and Benefits
Subject: Insurance
ISSN: 0893-780X
Year: 1995
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