Mandatory Paid Time Off: Microsoft’s Idea for Your Company’s Benefits Program

Fred WhittleseyConscious Compensation: The Impact Compensation Blog

Last year, Microsoft’s then-new CEO Satya Nadella made an early misstep when he said that female employees should not ask for a pay increase but should “trust the system” and that would result in “good karma” – for which he apologized a few hours later in an email to all Microsoft employees. Contrast that with today’s announcement that Microsoft will require … Read More

Wal-Mart: Employees up $1 billion, shareholders down $9 billion

Fred WhittleseyConscious Compensation: The Impact Compensation Blog

Just yesterday I told a client of mine from the retail sector that the big news in retail hourly employee compensation was the continuing executive compensation controversy – soon to be further fueled by the publication of CEO Pay Ratios, which will be most extreme in the retail and hospitality sectors – and the migration of the theme to “income … Read More

Conscious Compensation at Conscious Capitalism 2014 Conference

Fred WhittleseyConscious Compensation: The Impact Compensation Blog0 Comments

At the Conscious Capitalism 2013 conference there was little discussion about compensation.  There were a few specific examples – complete pay transparency and executive pay caps at Whole Foods Markets, for example – but no unified concept of how companies’ pay practices support, or don’t support, the principles of Conscious Capitalism. Over the past year I’ve worked to develop and … Read More

Below the Radar – How Conscious Compensation Looks in Real Life

Fred WhittleseyConscious Compensation: The Impact Compensation Blog0 Comments

Conscious Compensation® ideas appeal to many, offend others, and are scoffed at by some. The most difficult part of the conversation is the pragmatic aspect:  Even if you agree with the principles put forth by the various organizations advocating the principles underlying Conscious Compensation®, the typical opposition is that it is idealistic and unworkable.In a global economy based on capitalism, and … Read More

What’s Wrong with the “S” in “Total Shareholder Return”

Fred WhittleseyConscious Compensation: The Impact Compensation Blog0 Comments

We are caught in a zeitgeist that promotes Total Shareholder Return – the increase in a company’s stock price plus dividend payments over a defined period of time – as the most important, and perhaps only important, measure of a company’s success.  This, in turn, is applied by external observers of and advisers on assessments of executive compensation and corporate governance as the … Read More

Conscious Compensation®: Solution for Old Problems

Fred WhittleseyConscious Compensation: The Impact Compensation Blog0 Comments

With the new year upon us and “proxy season” on its way, we can expect to hear some familiar refrains about executive pay. Maybe something like this:”…corporate profits rose 108 percent, and CEO pay rose 481 percent, but the average worker’s pay rose just 28 percent (during the 8-year period), barely more than inflation…” “…pushing the average large company CEO … Read More

Conscious Compensation Parable From Auto Parts Manufacturing Companies

Fred WhittleseyConscious Compensation: The Impact Compensation Blog0 Comments

As a compensation consultant, I work with three auto parts manufacturing companies.The first, Company A, is a traditional company and has been in business for many years.  They market to all of the auto manufacturers, plus aftermarket suppliers.  Being a disciplined business, they seek the lowest prices for raw materials, labor, and capital that allows them to make parts within … Read More

The Myth of the Average Worker Pay Ratio

Fred WhittleseyConscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog0 Comments

Are CEOs overpaid? Many people think so. If so, many potential causes have been identified: CEOs with too much power, inattentive boards of directors, conflicts of interest by compensation consultants, the use of stock options – the list goes on. Depending on the source, the average CEO in 2005 was paid $10 million to $15 million dollars. This calculation usually … Read More