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Compensation Design and Communication

WaMu’s CEO of Three Weeks Could Exit with $11.6 Million

September 16, 2011
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With JPMorgan Chase’s takeover of Washington Mutual, it’s unclear what role Alan Fishman—who was hired only three weeks ago as WaMu’s new CEO—will play in the combined company. If Fishman leaves, it’s clearhe would be well-compensated for his short tenure.
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New York State Takes Aim at AIG’s Executive Comp

September 16, 2011
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New York Attorney General Andrew Cuomo is threatening legal action to recover ‘unwarranted and outrageous’ expenditures by American International Group Inc., including compensation payments to former executives.
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AIG Freezes Executives’ Employment Packages

September 16, 2011
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New York’s attorney general says American International Group Inc. has agreed to freeze the $19 million plus other benefits provided for former CEO Martin Sullivan in his employment package.
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Goldman’s Bonus Back-Off Backs Other Banks Into a Corner

September 16, 2011
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For the top brass at Merrill Lynch, JPMorgan Chase or Citigroup to draw their typical bonuses this year would be a ‘public relations disaster,’ says one expert.
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Shellshocked Gen Y Crossing Off Stocks as Investments

September 7, 2011
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Their principal concern is protecting what they have now, seemingly taking a page from their grandparents' book on saving for retirement.
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Dear Workforce How Do We 'Back-Charge' Payroll Costs?

September 7, 2011
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How do we "back-charge" payroll costs for a roving internal work team? We are creating a "utility team" that would be trained in several departments. We aren't sure how we should bill departments for borrowing staff from other departments. Is this typically done on an hourly, weekly or some other basis?
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Dear Workforce What Formulas Do Companies Use To Calculate Geographic Pay Diversity

September 7, 2011
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Our company has two worksites: one in a rural area of the state and one in a major metropolitan area. When we move staff from the rural area to the metro area, we use a cost-of-living ratio to determine changes in pay. This results in a 25 percent boost in earning power--very costly to our organization. What formulas do other companies with geographic diversity use?
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Dear Workforce How Should We Compensate Our Six Sigma Trainers

September 7, 2011
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We are training our first "black belts" in Six Sigma and want to know how to compensate them. Should we give an increase in base pay based on getting certified in Six Sigma processes, or pay them a percentage bonus based on savings per project? Or both?
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Dear Workforce Why Should We Periodically Review Our Pay and Benefits

September 7, 2011
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Our board has requested that human resources perform a strategic review of our benefit and compensation plan this year. Never before has this been done by our company. What should be our starting point?
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Dear Workforce How Should We Rein in Runaway Salaries

September 7, 2011
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Our organization discontinued merit increases about three years ago. The board of directors, however, has mandated across-the-board increases of 2 percent to 3 percent for all staff who are not in probationary status. But after three years of these increases, even people who were hired fairly recently have gotten pretty far away from the salary-grade minimums. In addition, we have several employees who have reached their salary-grade maximum during the past three years. We usually award a bonus rather than further increases for this group. Would it be equitable to raise the minimum starting salary and maximums each year by one-half of the across-the-board increase?
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