Aligning Pay and Results

"Perhaps the most striking change in the new model is the shift to a philosophy that emphasizes inclusion rather than exclusion."

"There is a widely shared agreement that pay-for-performance systems should be as simple as possible, yet they need to reflect an appropriate balance of the several forms of compensation."

"A key consideration in selecting performance measures is line of sight, or how clearly employees can see the links between performance and their own behaviors."

"Currently, many executives own far too little of their company's stock to have a serious impact on their actions."

"An important dimension of ownership is the number and value of shares owned."

"Most movers and shakers in the business and investor communities believe that all stakeholders?management, employees, and the community?benefit when board members are placed on an equal at-risk footing with stockholders. "

"If competencies are the "wheels" for managing knowledge work, pay remains the engine."

"It is unlikely that skill-based pay will be successful if pay rates are below the prevailing levels available to qualified people in the labor market."

"If the desired level of performance could be achieved without the cost of incentive plans, the organization would never implement them."

"Does 'fair and equitable' mean all team members should be paid the same? The short answer is no."

"There appears to be a lag in the effective use of incentives in many large multinational companies among local national employees."

"Paradoxically, employees seem to be gaining influence over how they do their work and losing influence over whether they will have a job."