Compensation Cafe

TSR: The "Secret Ingredient" for Executive Compensation? By Stephanie Thomas

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The Secret Ingredient for Executive Compensation

The "tried-and-true" answer is to link executive compensation to organizational performance using performance pay. In theory, it's a simple answer. But in reality, it's more complex than you might think. We have to decide what measures of performance we are going to use and how we combine them. The right combination of chosen individual metrics, corporate financial performance metrics, behavioral and ethics measures, and corporate social responsibility metrics is critical to creating a performance pay package that reinforces organizational goals and truly aligns the interests of executives and shareholders.

Are You Cultivating Superchickens? By Stephanie Thomas

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Cultivating Superchickens

Popular business books are full of advice on how to attract and retain "superstar" employees, control turnover by managing out the "deadwood", and design financial and non-financial incentives to drive productivity. I myself spend a great deal of time thinking about - and writing about - the relationship between incentive pay and productivity. But I recently came across a TED talk that has me questioning what I thought I knew.

It's What You Say AND How You Say It By Stephanie Thomas

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It's What You Say AND How You Say It

Anyone familiar with performance pay knows that in some situations it works as expected, and in other situations it can completely backfire. A new study by Ola Kvaloy, Petra Nieken and Anja Schottner helps to explain why.