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Variable Pay

When Is Too Much Pay at Risk

March 14, 2008
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Sales organizations constantly grapple with this question as they try to motivate salespeople without losing sight of other factors. One company found the right balance at 70 percent base pay and 30 percent incentive pay. Here’s how it works.
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<i>Dear Workforce</i> How Do We Reward Salespeople for Results

March 7, 2008
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Our consulting company is looking to add full-time sales positions. How do we set up compensation that keeps sales performance at the forefront by rewarding results?
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Disclosure of Incentive Pay Targets Improved in 2007

February 21, 2008
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Corporations are making progress in disclosing more details about how executives’ bonuses are determined—but many are still far from giving regulators and shareholders the full monty.
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You Get What You Pay For

January 30, 2008
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One approach to variable pay is activity-based compensation, in which part of an employee’s base pay hinges on hitting specific goals. For programs to be successful, employers need to measure the right things. Employees need to understand the metrics and know how well they’re doing.
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Is There a Link Between ESOPs and Better Company Performance

January 30, 2008
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A developing body of research suggests that exceptional business performance for ESOP firms is driven by a change from the traditional hierarchal business model.
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How to Better Comply With SEC Executive Compensation Disclosure Rules

January 4, 2008
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Despite the Securities and Exchange Commission’s requirement that companies disclose executive compensation in language that is ‘clear, concise and understandable,’ some observers believed the proxy statement disclosures for the first year under the new rules were anything but straightforward. The SEC issued comment letters and a report that should help companies do a better job in 2008. Here are the highlights of how it can be done better.
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Control and Customization

November 13, 2007
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A Towers Perrin global survey of performance management and compensation practices indicates that variable pay programs often fail to produce performance improvements.
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Pushing Money Toward The Top

November 13, 2007
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"Companies talk about the war for talent, but overriding all the concern about talent retention is the fact that companies are still determined to hold down fixed costs. “Budgets are not going to get bigger,"" one consultant says.""You have to cut one group to raise another.”"
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Compensation and Salary Forecast Lackluster Performance

November 13, 2007
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Talent retention and development are top priorities for CEOs and workforce management executives, but salary budgets are flat and, at many companies, performance management is only getting lip service. In a world of limited compensation resources, making performance programs work is the name of the game for 2008 and beyond.
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In Defense of CEO Pay

October 5, 2007
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In a new book, Watson Wyatt executive compensation consultants Ira Kay and Steve Van Putten argue that heightened interest--and outrage--over high executive pay is unfounded.
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