The Most Important Compensation Plan a Company Can Have

Most business leaders would love to find a single pay strategy that could become the answer for compensating their employees. It would be even better if it also carried a label that said something like this: “Just adopt this plan and all of your employees will perform exactly how you want them to.” If it existed, it would be the Holy Grail of compensation design. Companies of all sizes would rush to implement such a plan without delay.

In the real world, everyone recognizes there is no such plan. And this paper isn’t going to reveal one either, notwithstanding its title. However, knowing such a plan doesn’t exist does not prevent wishful thinking on the part of those responsible for engineering and implementing rewards that will “work.” As a result, this paper seeks to help those individuals find a solution to their underlying concerns about effective pay strategies.

Read More...

What Problem is Your Compensation Strategy Solving?

Effective problem solving is something with which every organization wrestles. And few are very good at solving the right problem. Consequently, businesses devote time and resources to issues that aren’t central to maintaining or improving a company’s growth trajectory. Inefficiencies emerge and waste is the result. Waste is an unrecoverable, real cost to an enterprise.

Too many business leaders create more problems than they solve when they initiate new pay strategies. Compensation should help remove barriers, not create them. This paper explains why and introduces eight principles that will transform pay into a solution to some of the organization’s most chronic problems.

Read More...

The Future of Compensation: Where It's Headed and Why

Trends in compensation are important for a number of reasons, not the least of which is pay programs represent the largest budget item most business leaders have to manage. Add to that factor the economic, business and cultural changes of recent years and you have American companies paying more attention to this issue than probably ever have before—and with greater urgency.

If we are going to adequately address that question and find effective pay solutions that match the evolving environment we’re in, we will need to construct a proper context for how the rewards approaches of tomorrow should differ from those of today.

Read More...

Phantom Stock: The Ideal Plan for Growing Private Companies

Many business leaders recognize the need to share value with those who help create it, but are reluctant to give away stock. Nonetheless, they want to foster an ownership mindset particularly among key producers in the organization. For such companies, phantom stock can be an ideal solution. It ties a future reward to the value of the business without diluting owner equity. This white paper explains why phantom stock is garnering so much attention recently among private companies and how it can positively impact the performance of key talent in an organization.

Read More...

Why Long Term Value Sharing Matters

Value sharing is an issue that, sooner or later, every enterprise leader must confront. For example, many responsible for driving business growth wonder whether some kind of longterm incentive will enable higher performance; and if so, which approach is best—stock, performance units, phantom equity or some other value sharing plan. Issues such as cost, impact on the P&L, and other related financial considerations funnel into a discussion whose conclusion very often is, “let’s take this up again next quarter.” Next quarter soon becomes next year, which subsequently evolves into an inertia induced “never.” In the meantime, worries usually fester about diluted productivity, insufficient engagement or the proverbial entitlement mentality.

Download the Whitepaper Here: Why Long-Term Value Sharing Matters

Read More...