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Mercer launches new book: Pay for results: Aligning executive compensation with business performance

Last updated: 2 June 2009

 

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Increased shareholder transparency around the world is elevating the topic of executive pay for performance from "obligatory mentions" to "need to demonstrate and clearly communicate." However, the numerous incentive approaches and combinations – and their implications – can be dizzying even to the compensation professional, not to mention the company’s board of directors who must approve the program and its rationale. 

 

Mercer's new book will provide HR, compensation, and finance executives and boards of directors with a practical road map to follow in developing and implementing executive incentives that help drive business needs and strategy – and can satisfy new norms of sound corporate governance and transparency.

 

Readers will learn through client case studies – bolstered by Mercer research -- how to apply performance metrics that align with shareholder investment and strengthen the incentive program business case. We will uncover myths in performance measurement strategy and design, and show how to avoid them by considering factors that can lead to the right measures and the right results. We will also address performance measurement challenges emerging today, such as setting targets in a slow economy, minimizing risk-taking and addressing new disclosure requirements. 

 

 Download Chapter One for free     Download table of contents  


Related resources - Anthology of articles

This site was designed so you have easy access to our best thinking on designing and implementing a performance measurement system that translates business strategies into action… and results into rewards.

 

We invite you and your colleagues to download PDFs of the following seven articles and read them at your leisure. Come back to visit this site as we plan to update and add content – including information about Mercer’s pay for performance book, to be published in 2008!

 

Please note that authors’ contact information is provided at the end of each article PDF should you have any questions.

 


Compensation committees and HR executives can benefit from a “New Performance Mindset”


A New Performance Mindset involves using a stable of analytical tools, coupled with healthy debate, to arrive at performance solutions that are tailored to the company’s specific business strategy and value creation model.

 


 

Performance measurement in a global setting


For today’s complex organizations, implementing a performance measurement system that delivers information, insight, impact and institutionalized behavior will create a common ‘language’ of business success and help move everyone in a common direction to achieve sustainable success for all.

 


 

Tackling the challenge of aligning pay with performance


While there is no silver bullet for selecting measures and performance targets, a comprehensive and rigorous approach can create a rational and defensible link between pay and performance.

 


 

Perfecting long-term incentive remuneration


The shift in LTI mix revealed by the SnapShot survey results suggest that companies are taking advantage of the changing regulatory and governance landscape to strengthen the attraction, retention and motivation value of their LTI programs and to enhance the link between pay for performance.

 


 

Moving beyond EPS and relative TSR


The future will find more and more companies moving beyond the standard EPS and relative TSR performance measures and using measures that best fit their specific circumstances. Such plans will help reinforce a pay-for-performance relationship whereby companies are paying for the right performance rather than performance on market-prevalent measures.

 


 

Incentive plan goal setting: new challenges, new approaches


In response to the call for greater transparency, companies are relying more heavily on external data and results relative to peers for a reality check on their performance goals.

 


 

Responsible peer group selection: A guide for identifying appropriate peers for assessing executive pay


A peer group should function as a defensible, data-based tool for making pay decisions that support the company’s business strategy and reinforce the alignment of pay with performance.

 

 

 


Related resources

 

The executive remuneration landscape is changing. To help you stay abreast of developments and gain Mercer’s insight, please visit our other sites that you may find of value:

 

Mercer book - Responsible Executive Compensation for a New Era of Accountability 

 

Executive Remuneration Perspective library of articles

 

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