We have a new incentive plan, what could possibly go wrong? (almost everything)

Fred WhittleseyCannabis Compensation Consultants, Conscious Compensation: The Impact Compensation Blog, Pay and Performance: The Compensation Blog

In this week’s edition of The Economist, the columnist Bagehot writes “How the British government rules by algorithm” (subscription required, and well worth it!). Compensation professionals: don’t leave this blog posting just yet. I’ll cite three examples they reference that speak for themselves, all direct quotes from the concise one-page article. “Targets create three common problems. They produce perverse results … Read More

Current Trends in Executive Compensation in Cannabis: Trulieve Cannabis Corp.

Fred WhittleseyCannabis Compensation Consultants

Fred WhittleseyCannabis Compensation ConsultantsT I reside in the US, in the State of Washington where cannabis is legal. Vertical integration is prohibited, but it’s a start. We, of course, are neighbors with Canada where the legal status of cannabis is quite different and there is a lot of complexity about where companies are headquartered, the subsidiaries they have and where … Read More

Executive Pay: What is Not Said

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

“You have to listen to not only what is being said, but what is not said — which is often more important than what they say.” Kofi AnnanThere may be daily updates on this issue because I am reading, daily, misreporting of executive pay. This time, it’s the Washington Post and it’s about what was not said. Capital One Chief … Read More

Pay Granted, Earned, and Paid: Bubble, Bubble Toil and Trouble?

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

The actual line from Macbeth was, of course, “Double, double toil and trouble.” Factual documented information often gets twisted into a widespread misunderstanding. And so we have executive pay.For the past twenty or more years the media have reported executive pay as a “story” worth covering. This has escalated over the past few years as the topic has moved from … Read More

Executive Pay: Complex or Complicated? (Redux)

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

Principal Consultant, Compensation Venture Group, Inc. Fellow, Salary.com, Inc.This entry updates a previous blog item from June 2006 I was once in a Board of Directors meeting in which one director said the compensation plan I proposed was complicated and his fellow director corrected him saying that it was not complicated, just complex. Merriam-Webster helps us with this distinction:Main Entry: … Read More

Corporate Governance and Executive Pay Across the Pond

Fred WhittleseyPay and Performance: The Compensation Blog

My monthly interview session for Keeping Up!, the podcast series sponsored by the Global Equity Organization, focused this time on the differences between corporate governance-based approaches to dealing with the executive and equity pay issues of the day. The Association of British Insurers (ABI) gave me a little Christmas present by releasing “Executive Remuneration – ABI Guidelines on Policies and … Read More

The New Return on Investment of Executive Pay

Fred WhittleseyPay and Performance: The Compensation Blog0 Comments

In May 2006, I presented at WorldatWork’s Annual Conference a session titled “The Real Meaning of Return Of Investment…for HR Professionals.” It was a financially-oriented look at how HR folks need to present their ideas – in dollars, just like the other areas of the business organization. I was thrilled to learn that it was named “Best of Conference” (though … 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