Paying for performance : a guide to compensation management / Peter T. Chingos, editor and [written by] consultants from Mercer Human Resource Consulting.

By:

Chingos, Peter T

Contributor(s):

Mercer Human Resource Consulting, Inc

Material type: Text

TextPublication details: New York ; [Chichester] : Wiley, c2002.Edition: 2nd edDescription: xvii, 366 p. : ill. ; 24 cmISBN:

0471176907
9780471176909

Subject(s):

Compensation management

DDC classification:

658.32 CHI

Holdings
Item type	Current library	Call number	Copy number	Status	Date due	Barcode
Standard Loan	Moylish Library Main Collection	658.32 CHI (Browse shelf(Opens below))	1	Available		39002100366674

Enhanced descriptions from Syndetics:

An up-to-date, revised edition of the complete, practical guide to designing and implementing effective compensation plans

A compensation package should be more than just the means to attract and retain talented executives. The right kind of plan can give your company a powerful strategic advantage. In Paying for Performance, Second Edition, consultants at Mercer Human Resource Consulting, Inc., one of the world's leading human resources consulting firms, give you the tools and techniques you need to design and implement a highly effective compensation program that will sharpen your company's competitive edge for years to come.

The book also shows you how to understand shareholder expectations, government regulation, and a host of business and human resources issues. Paying for Performance, Second Edition:
* Describes best practices used at America's top-performing companies
* Offers proven pay-for-performance tools for addressing current and future pay issues
* Uses case studies drawn from extensive Mercer Human Resource Consulting, Inc. research
* Addresses the special issues affecting pay-for-performance in not-for-profits
* Presents expert advice on managing talent and competencies to maximize performance
* Addresses the regulatory issues that affect executive compensation
* Covers everything from base pay to annual and long-term compensation

Previous ed.: / Peter T. Cingos [editor] and Peat Marwick. 1997.

Includes bibliographical references and index.

Table of contents provided by Syndetics

Introduction: Paying for Performance--Best Practices in a Changing Environment (p. xix)
1 Looking at Rewards Holistically (p. 1)
1.1 Why Is Reward Strategy Important? (p. 2)
1.2 What Constitutes a Reward Strategy? (p. 2)
1.3 How Corporate America Currently Looks at Rewards (p. 5)
1.4 The Hospitality Company Finds Its Answers (p. 7)
1.5 How Corporate America Might Look at Rewards (p. 9)
1.6 How to Develop an Effective Program (p. 11)
1.7 Case A: Implementing Reward Strategy to Stay Ahead in the Fast-Changing Technology Industry (p. 13)
1.8 Case B: Utilizing Reward Strategy to Integrate -- M&A Opportunities (p. 15)
1.9 Case C: Creating an Effective Global Reward Strategy (p. 17)
2 Variable Pay Programs: Pay for Results (p. 20)
2.1 A Process for Implementing Variable Pay (p. 20)
2.2 Case Study: Gainsharing Plan (p. 30)
2.3 Team Incentives (p. 36)
2.4 Conclusion (p. 42)
3 Performance Management: Mapping Out the Process (p. 43)
3.1 Framework for Defining Key Elements of Performance Success (p. 44)
3.2 Performance Management as an Ongoing Process (p. 48)
3.3 Mechanics of a Business-Driven Objective Setting Process (p. 49)
3.4 Multisource Performance Feedback as an Assessment Tool (p. 51)
3.5 Maximizing Performance Through Feedback and Coaching (p. 53)
3.6 Performance Evaluation and Development (p. 55)
3.7 The Appraisal Interview (p. 57)
3.8 Development Planning (p. 58)
3.9 The Performance Management Framework in Action (p. 60)
3.10 Lessons Learned for Effective Performance Management Program Design (p. 60)
4 Competency-Based Reward Design Approaches (p. 63)
4.1 Design Purpose for Competency-Based Rewards (p. 64)
4.2 Current Practices in Competency Linkages (p. 65)
4.3 Base Pay Applications of Competency Linkage (p. 69)
4.4 Variable Pay/Incentive Applications (p. 80)
4.5 Recognition Award Applications (p. 84)
4.6 Conclusions on Competency-Reward Linkages (p. 85)
5 Managing Talent to Maximize Performance (p. 86)
5.1 The Business Opportunity for Talent Management (p. 86)
5.2 Aligning Talent Management and Business Strategy (p. 87)
5.3 Key Factors in Successful Talent Planning and Development (p. 90)
5.4 Conclusion (p. 103)
6 Getting the Most from Your Sales Compensation Plan (p. 104)
6.1 Why Change a Sales Compensation Plan? Is It Worth the Risks? (p. 105)
6.2 What Tells You the Sales Compensation Plan Really Is Broken? (p. 108)
6.3 How Do You Know When Your Sales Compensation Plan Is Really Broken? (p. 113)
6.4 Design and Implementation (p. 122)
6.5 Administration (p. 126)
6.6 Auditing and Modifying (p. 127)
6.7 Some Final Thoughts on Designing a Sales Compensation Plan (p. 128)
7 Pay for Performance in Not-for-Profit Organizations (p. 130)
7.1 Introduction to Tax-Exempt Organizations (p. 131)
7.2 Federal Tax Rules (p. 131)
7.3 Intermediate Sanctions (p. 132)
7.4 Determining Reasonableness (p. 138)
7.5 Private Foundations (p. 139)
7.6 Deferred Compensation in Tax Exempts (p. 139)
7.7 Typical Executive Compensation Programs (p. 140)
7.8 Designing Effective Incentives (p. 141)
7.9 Long-Term Incentive Plans (p. 146)
7.10 Developing a Pay-for-Performance Culture (p. 148)
7.11 Special Compensation Arrangements (p. 149)
7.12 Conclusion (p. 152)
8 Designing the Annual Management Incentive Plan (p. 153)
8.1 Role of Annual Incentives in Compensation Strategy (p. 153)
8.2 Influencing Management Behavior: Building a Line-of-Sight Relationship (p. 154)
8.3 Corporate and Business Unit Performance Measurement (p. 155)
8.4 Determining Participation and Size of Award Opportunities (p. 158)
8.5 Building Performance Scales (p. 160)
8.6 Assessing Individual Performance (p. 164)
8.7 Assessing Cost-Benefits of New Plans and Plan Modifications (p. 165)
8.8 Other Considerations (p. 166)
8.9 Final Checklist (p. 167)
9 Designing Incentive Compensation Programs to Support Value-Based Management (p. 169)
9.1 What Is Value-Based Management? (p. 169)
9.2 VBM Performance Metrics Differ from Other Financial Measures (p. 170)
9.3 VBM Implementation (p. 171)
9.4 Designing VBM-Based Compensation Plans (p. 175)
9.5 Establishing Performance Targets (p. 178)
9.6 Conclusion (p. 185)
10 Long-Term Incentives (p. 187)
10.1 Long-Term Incentives Defined (p. 187)
10.2 The Most Common Approaches (p. 188)
10.3 Objectives of Long-Term Incentive Plans (p. 188)
10.4 Long-Term Plans and Compensation Strategy (p. 189)
10.5 Stock Options (p. 190)
10.6 Stock Appreciation Rights (p. 195)
10.7 Restricted Stock (p. 195)
10.8 Performance Plans (p. 197)
10.9 Private Company Long-Term Incentives (p. 199)
10.10 Increased Participation (p. 199)
10.11 Larger Awards (p. 200)
10.12 Investor Concerns (p. 201)
10.13 Responses to Market Volatility (p. 202)
10.14 Successful Long-Term Incentive Plans (p. 204)
11 Broad-Based and Global Equity Plans (p. 205)
11.1 Prevalence (p. 205)
11.2 Tax, Accounting, Regulatory, and Legal Issues for Broad-Based Plans (p. 207)
11.3 Mechanics of Making Grants (p. 208)
11.4 Calibration of Individual Awards (p. 208)
11.5 Pros and Cons of Broad-Based Stock Compensation--Its Place within a Total Rewards Strategy (p. 210)
11.6 Global Stock Plans: U.S. Companies (p. 220)
11.7 Effects in High- and Low-Paying Countries (p. 222)
12 Executive Benefits (p. 223)
12.1 Core Benefits and Perquisites (p. 223)
12.2 Nonqualified Deferred Compensation (p. 225)
12.3 Executive Life Insurance (p. 234)
12.4 Executive Disability Benefits (p. 237)
12.5 Medical Benefits (p. 238)
12.6 Perquisites (p. 239)
12.7 Conclusion (p. 240)
13 A Pay-for-Performance Model (p. 241)
13.1 Guiding Principles (p. 241)
13.2 A Compensation Model (p. 244)
13.3 Base Salary Element (p. 246)
13.4 Annual Incentive Elements (p. 247)
13.5 Long-Term Incentive Elements (p. 253)
13.6 Other Compensation Design Considerations (p. 261)
13.7 Communications (p. 262)
13.8 Conclusion (p. 263)
14 Driving Organizational Change with Executive Compensation and Communication (p. 264)
14.1 Types of Organizational Change (p. 265)
14.2 The Relationship Between Compensation Strategy and Organizational Change (p. 266)
14.3 Developing a Communication Strategy to Support and Drive Behavior (p. 269)
14.4 Communicating and Implementing an Executive Compensation Strategy (p. 271)
14.5 Linkage of Compensation to the Organization's Culture (p. 273)
14.6 The Message or Purpose of Compensation Elements (p. 275)
14.7 Linking Compensation Programs to Characteristics of Organization Change--A Readiness Assessment (p. 277)
14.8 Conclusion (p. 278)
15 Transaction-Related Compensation Arrangements (p. 279)
15.1 Overview of Transaction-Related Compensation Arrangements (p. 280)
15.2 Change-in-Control and Severance Programs (p. 281)
15.3 Retention and Transaction Bonuses (p. 288)
15.4 Treatment of Cash and Equity Incentives (p. 292)
15.5 Corporate Governance Issues (p. 295)
15.6 Conclusion (p. 296)
16 Director Compensation (p. 297)
16.1 Trends in Director Compensation (p. 297)
16.2 NACD Guidelines and Changes in Section 16(b) (p. 298)
16.3 Elements of Director Compensation (p. 299)
16.4 Developing a Director Compensation Program (p. 307)
16.5 Summary (p. 312)
17 The Role of the Compensation Committee (p. 315)
17.1 Business/Competitive Environment (p. 315)
17.2 Shareholder and Regulatory Backdrop (p. 315)
17.3 Performance Benchmarking (p. 322)
17.4 Use of Third-Party Resources (p. 325)
17.5 Questions and Issues for the Compensation Committee (p. 326)
17.6 Summary (p. 328)
18 Accounting for Stock-Based Compensation (p. 329)
18.1 Background (p. 329)
18.2 Understanding the Basics of APB 25 (p. 332)
18.3 Understanding the Basics of FAS 123 (p. 347)
18.4 Impact of Stock-Based Awards on Earnings Per Share (p. 352)
19 Selected Tax Aspects of Executive Compensation Plans (p. 355)
19.1 Taxation of Equity Devices (p. 355)
19.2 Golden Parachutes (p. 364)
19.3 Section 162(m) Compliance (p. 370)
Index (p. 373)

Author notes provided by Syndetics

Peter T. Chingos is National Director for the Executive Compensation Consulting Practice of Mercer Human Resource Consulting, Inc.