Creative Compensation Plans

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

As I discussed in my Compensation Integrity blog on April 19, the latest compensation scandal over the timing of stock option grants has created shock and awe. Would corporate executives and members of boards of directors really time the granting of options to catch stock price lows and ensure additional gain from those options? Or worse, would a company backdate … Read More

April 1: Compensation This Weak

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

What an incredible couple of weeks it has been in the world of compensation. I intended to blog much earlier but the deluge of media stories kept me reading instead of writing. Here’s a recap:Job Bank for the Jobless General Motors has a program, known as the Job Bank, that provides full pay and benefits for workers when there is … Read More

How Did You Do?

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Every year I read Parade magazine’s article on what people earn. Actually, now that I think about it, I don’t think I’ve ever actually read the article but rather scan every picture and job title and salary. As a compensation specialist I can’t resist. Usually I just see surveys or spreadsheets of what people earn – job titles and salaries; … Read More

A Blog about a Blog

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

In addition to my consulting work with Compensation Venture Group, teaching for WorldatWork, speaking at conferences, and founding role with The Integrity Institute, I serve as an advisor and occasional blogger for PayScale, Inc. Check out the PayScale Blog where this week I discuss the burgeoning chaos in executive pay reporting by the media:Take This Executive Compensation QuizCompensation This Week

Why Your Compensation Survey Data is Wrong

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Most compensation professionals realize that compensation survey data has always been flawed. Over the past two years, however, it has become not only meaningless but dangerously misleading. Having always been skeptical of the data, my concerns were highlighted by a two-year stint as a consultant affiliated with the self-described “leading provider” of surveys for a particular industry. As I work … Read More

Maytag CEO Ralph Hake: The Poster Child for Whats Wrong with CEO Compensation

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Rarely in this blog will you see me directly criticize an individual’s compensation arrangements but this example epitomizes why shareholders are angry about the state of CEO compensation today. It is these types of incidents that lead to generalizations about executive pay and the resulting activism, legislation, and misguided reactions. We cannot conclude that all CEO pay is wrong, or … Read More

Pay for What Performance?

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

“$400 awarded to each Alaska Airlines employee.” http://seattletimes.nwsource.com/html/businesstechnology /2002748080_bizbriefs19.htmlThis headline could have just as easily read “Alaska Airlines Pays $4 million in bonuses for providing subpar customer satisfaction 1/3 of the time.” At the schools I attended, missing 1/3 of the answers was a score of 67% — a “D” — and I don’t remember any bonuses being paid for … Read More

When Nobody Likes Your Executive Compensation Proposal

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Imagine submitting a compensation proposal and having the following groups express vehement opposition to it: The United Auto Workers, United Steel Workers, a U.S. Government agency (The Pension Benefit Guaranty Corp.), bondholder Wilmington Trust, pension funds in the states of Mississippi and Oklahoma, another pension fund in The Netherlands, and an investment fund manager in Austria.This is what Delphi Corp. … Read More

The New Share Plan Metrics

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Until recently, the ubiquitous use of stock options made competitive comparisons a relatively easy process. Now, significant changes in plan design – triggered by new accounting rules, the corporate governance climate, and emerging “standards” from a variety of constituencies –render the old metrics inadequate. Overhang, run rate, Black-Scholes values, and other measures give an inaccurate view of pay levels and … Read More