Edward J. Rayner, a partner with Katten Muchin Rosenman LLP says that when it comes to executive compensation, your ability to adapt to a changing economy is critical--and part of that is identifying and reacting to trends. We asked Rayner to discuss the trends he's seeing in executive compensation, in an effort to help readers as they ride out this difficult economy.
A compensation plan self-audit may seem intimidating, and it's true that you may want to seek expertise to help you the first time through. But once the tracks are laid, you can follow them every year or so to learn whether your compensation plans are doing what you want them to--or whether they are not.
With an abundance of salary surveys available, it is very likely that you can find pricing information for the job you're evaluating, in your area, at any given time. The process comes down to three simple steps: choose a salary survey, locate the job, price it at the 50th percentile. But there are always a few jobs, perhaps those in high demand in your area, or those requiring a unique set of skills, for which you'll need to inject a bit of art into the process.
There is a school of thought that says you can't overpay a sales professional. Right away, Brian Jeffrey, CSP and president of Salesforce Assessments, Ltd., and a long-time salesman himself, spots two problems with that statement.
Attracting and retaining qualified and productive employees is a challenge facing all businesses. Compensation, including employee benefits, is a key tactic in this feat, and finding the right balance between market demands and business needs is a continual process.
Paul R. Dorf is a qualified expert witness in matters of compensation, frequently testifying before state and federal courts after a company is sued for a breach of compensation policy. Companies, he says, make a lot of mistakes--mistakes that he would like to help you avoid.
The fight for top executive talent sometimes feels like choosing up sides in the school yard: the big boys (public companies) always seem to beat out their smaller counterparts (privately held firms). When the dust settles, the private companies are left standing at the curb while the big kids take the cream of the crop and go off to play. Steven Slutsky, total compensation director for PricewaterhouseCoopers' Private Company Services practice, explains how this perception is changing--and why change was inevitable.
It is time to re-examine the reasons you started and maintain your deferred compensation plan, says Scott Hill, a Chartered Financial Analyst and Certified Financial Planner with Kanaly Trust Company. Hill regularly advises his executive clients on whether or not they should even enter a deferred compensation program when one is offered at their place of employment.
In its latest survey, outsourcing and staffing firm Hudson asked 10,000 U.S. workers their views and opinions on their compensation and benefits. The answers revealed what may be a fundamental flaw in a great plan's execution: many workers don't see the connection between their performance and their pay.
When company performance is down and executive pay is up, people will begin to question how the pay was determined. If it appears the independent compensation advice was provided by someone who may not truly be independent, people will begin to wonder about owning the company's stock.
