Compensation

  • Psychological Effects of Executive Salary Imbalance

    Ready to Find Your Next Star Performer? When the salary imbalance between a company’s CEO and those below becomes excessive, the entire organization may be thrown out of whack. In a recent study by the CIPD, it was revealed that this wage imbalance does have a noticeable psychological effect on the workers below the CEO. Almost 60% of employees used in the study admitted that the salary imbalance demotivates them, and more than half said they felt excessive executive pay damaged the company’s reputation. This makes it more difficult to retain loyal employees and can turn off some job seekers...
  • How to Recognize your High Performing Employees

    Ready to Find Your Next Star Performer? As an employer, it’s important that you know how to recognize who your high performing employees are. Whoever you choose to place in leadership positions can either make or break your company. Research has shown that companies with strong leadership positions are more likely to double both their profit and their revenue. So how do you identify the right person for the job? Mainly through observation. High performing employees often have certain habits or characteristics that make them easier for you to spot, but only if you’re paying attention. For example, you should...
  • Effective Executive Compensation Plans

    An executive compensation plan is a crucial element in recruiting and maintaining a happy, productive workforce.  This area has been affected by Enron, WorldCom, the SEC and the accounting standards board. On one hand, Boards want a plan that effectively attracts, retains and motivates the top management and, on the other hand, they must exercise due diligence in assuring that pay and performance are properly tied to each other. The following are suggestions for an effective executive compensation plan: The plan should be tied to measures of both profitability and growth.  A growing but unprofitable company and a profitable but...

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