Executive compensation

Can anyone help me with an article or write up on trends and drivers of executive compensation?

Pooja

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Pooja

Dear Pooja Mehra,

The picture I have of Executive Compensation is that if it is a regular business environment and not a "one man-show" it is the duty of the
Human Resources funtionary to propose to Management new trends
in compensation administration as it relates to your industry and economy
at large.

And most times it has to be a global survey to cover all employees while you leave the decision for the Executive Management to make.

Meanwhile go ahead and do your survey amongst you industry colleagues
and propose to your Management.


Cheers and have a nice one always.

Afolabi Ajayi
Nigeria

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Afolabi Ajayi
HR/Mktg Consultant
Lagos Nigeria
234 802 313 7897

Hi!

Executive Compensation tends to be more industry based, more than anything else. Global surveys are irrelevant, although they can be a good guide.

We have seen Executive Compen rates from different companies and industries. The differences among the rates, even between expats and local executives, are horribly wide.

There are CEO median rates in certain industries that approximate only the supervisory rates in other industries. Even the gaps of compen rates of CEOs in the Fortune 500 are quite big.

We have designed executive compensation for companies.

What one needs to do is not just to create rates for the executive level. We have to make sure that the executive salary structure has a logical and reasonable impact on the company's corporate wide salary structure and philosophy, especially on the managerial and rank and file, and the total current compensation budget approved by its board.

I like to compare Executive Compensation to the management of the salaries of the professional basketball players (e.g. NBA), where the size of one superstar player's pay has a tremendous impact on the prospective pay of the other players of the team.

Best wishes.

Ed Llarena, Jr.
Managing Partner
Emilla Consulting
Manila, PHilippines