Week of January 12th
January 20th, 2009
What’s News is a regularly updated summary of news stories, typically related to compensation, that we are following, find interesting, or find baffling.
Week of January 12th…
- Robert Frank, a Cornell economist, discusses the possible unintended consequences of limiting executive compensation, something that is receiving increasing attention from shareholder activists and politicians. Limiting fixed executive compensation costs (i.e. base salaries) to a multiple of the broader employee population’s base salaries has shown merit. However, the components of pay that link to performance should not be capped. We strongly believe all employees should be rewarded for creating shareholder value through meeting their performance objectives. And conversely, should not be rewarded when performance criteria are not met.
