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Corporate Compensation: Should the Government Intervene?
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To explore the impact of the current recession on workforce management, compensation and related subjects, Workscape and the Human Capital Institute (HCI) conducted survey research with more than 300 organizations in February 2009. The researchers supplemented survey findings with a “virtual executive roundtable” in April 2009. Made up of 10 respected thought leaders from across the country, including academics, consultants and senior practitioners, the roundtable offered candid responses to a series of interview questions on topics including executive compensation, new rules, possible government legislation and connecting pay to performance.
Viewed together, the quantitative and qualitative research findings provide insights into current practices for managing bonus compensation and connecting pay to performance, as well as future possibilities for executive and high performer compensation:
• Only 27% of firms surveyed pay big bonuses (defined as twice annual base pay or better) to non-executive high performers. In small companies with 100 or fewer employees, 44% offer such bonuses to non-executive high performers.
• In general, executives and employees know the measure on which their bonuses are based. Of responding organizations, 65% share this information with employees. They also, in general, share employees’ progress in comparison to their goals. Most of our respondent organizations actively share employees’ progress against their goals; just over 20% do not provide this information.
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