| |
| |
| Introduction: Paying for Performance--Best Practices in a Changing Environment | |
| |
| |
| |
| |
| Looking at Rewards Holistically | |
| |
| |
| |
| |
| Why Is Reward Strategy Important? | |
| |
| |
| |
| What Constitutes a Reward Strategy? | |
| |
| |
| |
| How Corporate America Currently Looks at Rewards | |
| |
| |
| |
| The Hospitality Company Finds Its Answers | |
| |
| |
| |
| How Corporate America Might Look at Rewards | |
| |
| |
| |
| How to Develop an Effective Program | |
| |
| |
| |
| Case A: Implementing Reward Strategy to Stay Ahead in the Fast-Changing Technology Industry | |
| |
| |
| |
| Case B: Utilizing Reward Strategy to Integrate -- M&A Opportunities | |
| |
| |
| |
| Case C: Creating an Effective Global Reward Strategy | |
| |
| |
| |
| Variable Pay Programs: Pay for Results | |
| |
| |
| |
| |
| A Process for Implementing Variable Pay | |
| |
| |
| |
| Case Study: Gainsharing Plan | |
| |
| |
| |
| Team Incentives | |
| |
| |
| |
| Conclusion | |
| |
| |
| |
| Performance Management: Mapping Out the Process | |
| |
| |
| |
| |
| Framework for Defining Key Elements of Performance Success | |
| |
| |
| |
| Performance Management as an Ongoing Process | |
| |
| |
| |
| Mechanics of a Business-Driven Objective Setting Process | |
| |
| |
| |
| Multisource Performance Feedback as an Assessment Tool | |
| |
| |
| |
| Maximizing Performance Through Feedback and Coaching | |
| |
| |
| |
| Performance Evaluation and Development | |
| |
| |
| |
| The Appraisal Interview | |
| |
| |
| |
| Development Planning | |
| |
| |
| |
| The Performance Management Framework in Action | |
| |
| |
| |
| Lessons Learned for Effective Performance Management Program Design | |
| |
| |
| |
| Competency-Based Reward Design Approaches | |
| |
| |
| |
| |
| Design Purpose for Competency-Based Rewards | |
| |
| |
| |
| Current Practices in Competency Linkages | |
| |
| |
| |
| Base Pay Applications of Competency Linkage | |
| |
| |
| |
| Variable Pay/Incentive Applications | |
| |
| |
| |
| Recognition Award Applications | |
| |
| |
| |
| Conclusions on Competency-Reward Linkages | |
| |
| |
| |
| Managing Talent to Maximize Performance | |
| |
| |
| |
| |
| The Business Opportunity for Talent Management | |
| |
| |
| |
| Aligning Talent Management and Business Strategy | |
| |
| |
| |
| Key Factors in Successful Talent Planning and Development | |
| |
| |
| |
| Conclusion | |
| |
| |
| |
| Getting the Most from Your Sales Compensation Plan | |
| |
| |
| |
| |
| Why Change a Sales Compensation Plan? Is It Worth the Risks? | |
| |
| |
| |
| What Tells You the Sales Compensation Plan Really Is Broken? | |
| |
| |
| |
| How Do You Know When Your Sales Compensation Plan Is Really Broken? | |
| |
| |
| |
| Design and Implementation | |
| |
| |
| |
| Administration | |
| |
| |
| |
| Auditing and Modifying | |
| |
| |
| |
| Some Final Thoughts on Designing a Sales Compensation Plan | |
| |
| |
| |
| Pay for Performance in Not-for-Profit Organizations | |
| |
| |
| |
| |
| Introduction to Tax-Exempt Organizations | |
| |
| |
| |
| Federal Tax Rules | |
| |
| |
| |
| Intermediate Sanctions | |
| |
| |
| |
| Determining Reasonableness | |
| |
| |
| |
| Private Foundations | |
| |
| |
| |
| Deferred Compensation in Tax Exempts | |
| |
| |
| |
| Typical Executive Compensation Programs | |
| |
| |
| |
| Designing Effective Incentives | |
| |
| |
| |
| Long-Term Incentive Plans | |
| |
| |
| |
| Developing a Pay-for-Performance Culture | |
| |
| |
| |
| Special Compensation Arrangements | |
| |
| |
| |
| Conclusion | |
| |
| |
| |
| Designing the Annual Management Incentive Plan | |
| |
| |
| |
| |
| Role of Annual Incentives in Compensation Strategy | |
| |
| |
| |
| Influencing Management Behavior: Building a Line-of-Sight Relationship | |
| |
| |
| |
| Corporate and Business Unit Performance Measurement | |
| |
| |
| |
| Determining Participation and Size of Award Opportunities | |
| |
| |
| |
| Building Performance Scales | |
| |
| |
| |
| Assessing Individual Performance | |
| |
| |
| |
| Assessing Cost-Benefits of New Plans and Plan Modifications | |
| |
| |
| |
| Other Considerations | |
| |
| |
| |
| Final Checklist | |
| |
| |
| |
| Designing Incentive Compensation Programs to Support Value-Based Management | |
| |
| |
| |
| |
| What Is Value-Based Management? | |
| |
| |
| |
| VBM Performance Metrics Differ from Other Financial Measures | |
| |
| |
| |
| VBM Implementation | |
| |
| |
| |
| Designing VBM-Based Compensation Plans | |
| |
| |
| |
| Establishing Performance Targets | |
| |
| |
| |
| Conclusion | |
| |
| |
| |
| Long-Term Incentives | |
| |
| |
| |
| |
| Long-Term Incentives Defined | |
| |
| |
| |
| The Most Common Approaches | |
| |
| |
| |
| Objectives of Long-Term Incentive Plans | |
| |
| |
| |
| Long-Term Plans and Compensation Strategy | |
| |
| |
| |
| Stock Options | |
| |
| |
| |
| Stock Appreciation Rights | |
| |
| |
| |
| Restricted Stock | |
| |
| |
| |
| Performance Plans | |
| |
| |
| |
| Private Company Long-Term Incentives | |
| |
| |
| |
| Increased Participation | |
| |
| |
| |
| Larger Awards | |
| |
| |
| |
| Investor Concerns | |
| |
| |
| |
| Responses to Market Volatility | |
| |
| |
| |
| Successful Long-Term Incentive Plans | |
| |
| |
| |
| Broad-Based and Global Equity Plans | |
| |
| |
| |
| |
| Prevalence | |
| |
| |
| |
| Tax, Accounting, Regulatory, and Legal Issues for Broad-Based Plans | |
| |
| |
| |
| Mechanics of Making Grants | |
| |
| |
| |
| Calibration of Individual Awards | |
| |
| |
| |
| Pros and Cons of Broad-Based Stock Compensation--Its Place within a Total Rewards Strategy | |
| |
| |
| |
| Global Stock Plans: U.S. Companies | |
| |
| |
| |
| Effects in High- and Low-Paying Countries | |
| |
| |
| |
| Executive Benefits | |
| |
| |
| |
| |
| Core Benefits and Perquisites | |
| |
| |
| |
| Nonqualified Deferred Compensation | |
| |
| |
| |
| Executive Life Insurance | |
| |
| |
| |
| Executive Disability Benefits | |
| |
| |
| |
| Medical Benefits | |
| |
| |
| |
| Perquisites | |
| |
| |
| |
| Conclusion | |
| |
| |
| |
| A Pay-for-Performance Model | |
| |
| |
| |
| |
| Guiding Principles | |
| |
| |
| |
| A Compensation Model | |
| |
| |
| |
| Base Salary Element | |
| |
| |
| |
| Annual Incentive Elements | |
| |
| |
| |
| Long-Term Incentive Elements | |
| |
| |
| |
| Other Compensation Design Considerations | |
| |
| |
| |
| Communications | |
| |
| |
| |
| Conclusion | |
| |
| |
| |
| Driving Organizational Change with Executive Compensation and Communication | |
| |
| |
| |
| |
| Types of Organizational Change | |
| |
| |
| |
| The Relationship Between Compensation Strategy and Organizational Change | |
| |
| |
| |
| Developing a Communication Strategy to Support and Drive Behavior | |
| |
| |
| |
| Communicating and Implementing an Executive Compensation Strategy | |
| |
| |
| |
| Linkage of Compensation to the Organization's Culture | |
| |
| |
| |
| The Message or Purpose of Compensation Elements | |
| |
| |
| |
| Linking Compensation Programs to Characteristics of Organization Change--A Readiness Assessment | |
| |
| |
| |
| Conclusion | |
| |
| |
| |
| Transaction-Related Compensation Arrangements | |
| |
| |
| |
| |
| Overview of Transaction-Related Compensation Arrangements | |
| |
| |
| |
| Change-in-Control and Severance Programs | |
| |
| |
| |
| Retention and Transaction Bonuses | |
| |
| |
| |
| Treatment of Cash and Equity Incentives | |
| |
| |
| |
| Corporate Governance Issues | |
| |
| |
| |
| Conclusion | |
| |
| |
| |
| Director Compensation | |
| |
| |
| |
| |
| Trends in Director Compensation | |
| |
| |
| |
| NACD Guidelines and Changes in Section 16(b) | |
| |
| |
| |
| Elements of Director Compensation | |
| |
| |
| |
| Developing a Director Compensation Program | |
| |
| |
| |
| Summary | |
| |
| |
| |
| The Role of the Compensation Committee | |
| |
| |
| |
| |
| Business/Competitive Environment | |
| |
| |
| |
| Shareholder and Regulatory Backdrop | |
| |
| |
| |
| Performance Benchmarking | |
| |
| |
| |
| Use of Third-Party Resources | |
| |
| |
| |
| Questions and Issues for the Compensation Committee | |
| |
| |
| |
| Summary | |
| |
| |
| |
| Accounting for Stock-Based Compensation | |
| |
| |
| |
| |
| Background | |
| |
| |
| |
| Understanding the Basics of APB 25 | |
| |
| |
| |
| Understanding the Basics of FAS 123 | |
| |
| |
| |
| Impact of Stock-Based Awards on Earnings Per Share | |
| |
| |
| |
| Selected Tax Aspects of Executive Compensation Plans | |
| |
| |
| |
| |
| Taxation of Equity Devices | |
| |
| |
| |
| Golden Parachutes | |
| |
| |
| |
| Section 162(m) Compliance | |
| |
| |
| Index | |