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MUSINGS ON COMPENSATION AND PERFORMANCE
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DECEMBER 20, 2010
DECEMBER 10, 2010
NOVEMBER 29, 2010
NOVEMBER 16, 2010
Welcome to the Team, We’re Thinking About Firing YouI was chaKng with a colleague about a talented new hire he was hoping his company would be able to bring on. The candidate aced her interviews and came with high recommendaQons. She went to the right schools and interned at the right firms. Everything seemed on track unQl she received her offer leUer. The leUer was all roses and sunshine unQl you got to just about the last paragraph. Early on it menQoned how impressive she was and how they would be happy toMORE...
Offer the World First and Money SecondMy 16-‐month old nephew inspires today’s posQng. The other day, while watching a video of him, I couldn’t help be amazed at the vastness o f his world. This is true both in physical space and size relaQve to his liUle body. He lives in a small town in Nebraska, but it couldn’t seem larger to him. I o[en envision him in twenty years. This seemingly large world will in fact turn out to be very small. Nearly every adult male in his area works for the railroad or in some capacity of agriculture. The physical MORE...
When KISS becomes WISH -‐ Understanding CompensaQonWe have all heard of the KISS (Keep It Simple Stupid) principle, but when does KISS become a WISH (When Is Simple Harmful)? Think about the color-‐coding at U.S. Airports. The Homeland Security Advisory Systems has been the “HIGH” threat-‐level orange since shortly a[er the color-‐coding system went into place. However, how many people know what the orange level really represents? There is a level indicated by the color red above it and yellow, green and blue levels below it. The simplicity of MORE...
COMPENSATION CAFE
COMPENSATION CAFE
COMPENSATION CAFE
COMPENSATION CAFE
JULY - DECEMBER 2010
Too Heavy for Any Amount of MoneyHappy Monday! Were you excited and ready for work today? Was the weekend long enough? I keep hearing from people that they are puKng in more effort and longer hours than ever before. Workloads are increasing, but companies aren’t hiring. We all know that overworking employees leads to progressively diminishing returns. But, when is more work simply too much?MORE...
MUSINGS ON COMPENSATION AND PERFORMANCE
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Neutralize the Mercury in Your CompensaQon PoolIt doesn’t take much mercury to poison a water source. Just two parts per billion (2 ppb). That’s the maximum amount of mercury that the EPA and FDA allow in drinking water. Any more than this and your body may accumulate this poison and it will slowly, but severely sicken you. You may wonder why I am giving a clean water lesson on the CompensaQon Cafe blog. Well, every company has mercury in its pool of employees. We call them malcontents, MORE...
NOVEMBER 1, 2010COMPENSATION CAFE
How Fast Would You Run in the Dark?It’s 3AM and it’s almost pitch black outside. The damp chill of the dead night air is on your bare arms. You can barely see your hand in front of your face. An unseen voice tells you will be running a full marathon. Suddenly someone points you in a direcQon and tells you run as fast as you can. Then they disappear. How fast would you run? How long would you run? At what point would you simply stop running and wait for daylight?MORE...
OCTOBER 25, 2010COMPENSATION CAFE
CompensaQon Top ChefHave you ever noQced how compensaQon plans can be like Indian food? The list of ingredients sounds exoQc, but is not very long. Each ingredient is used for a specific reason and care must be taken not to use too much or too liUle. Hundreds of recipes can be created by combining, adding or removing a limited number of ingredients. The final product is determined by how carefully the selected ingredients are cut, cooked and what dish is being served to compliment the unique combinaQon of flavors. Most. MORE...
COMPENSATION CAFE OCTOBER 13, 2010
COMPENSATION CAFE SEPTEMBER 28, 2010
Management is About Decisions & AccountabilityI am a casual baseball fan who has loved this year’s post-‐season baUles. But truthfully, I have o[en wondered what a manager actual does. There are several coaches for every team, hiKng, first base etc, but only one manager. It seems like he assigns the baKng order and picks a pitcher and then sits through the game as others play it on the field. While watching a recent San Francisco Giants win over the Phillies I finally understood a baseball manager's real role. The manager’s true purpose is to make MORE...
MOST POPULAR ARTICLE OF 2010
MUSINGS ON COMPENSATION AND PERFORMANCE
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The Challenge... Summer Time, Pools and Work"Uncle Dan, give me a challenge!" My 12-‐year old niece was at the edge of the huge community pool. She and her brother were enjoying the last “pool day” of summer. They had been playing and leaping off the diving boards for almost an hour.Give me a challenge! The first translaQon of this phrase was easy. “Make this pool interesQng, my brain is geKng bored.” As she swam underwater across the pool in four breaths, she turned and waved at me a[er every breath. The second translaQon MORE...
Are Employee Engagement Surveys Like New Year’s ResoluQons?RetenQon during bad Qmes is easier than when Qmes are good. It’s a fact; people look for safety in dark Qmes. Ironically, when it comes to retenQon, bad Qmes are what keep HR pros awake at night. There is the belief that when business turns upward, employees become moQvated to start looking for engagements outside their current jobs. This concern of not being able to retain top talent is o[en reinforced by the surveys employers look to for “data”. MORE...
The Top 3 Provisions of Dodd-‐Frank..at Least for the MomentI once had a colleague who was an acronym addict. His philosophy was anything more than a TLA (three leUer acronym) was inefficient and confusing. If the name of a product or service required more than a TLA, he would insist it be changed to something shorter (not my strong suit). I have been doing a lot of presentaQons on the Dodd Frank Wall Street Reform and Consumer ProtecQon Act and the Qtle alone nearly fills my twiUer message box. For the sake of simplicity and my tweet stream, I MORE...
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SEPTEMBER 1, 2010
AUGUST 23, 2010
AUGUST 12, 2010
COMPENSATION CAFE
COMPENSATION CAFE
COMPENSATION CAFE
COMPENSATION CAFE
Equity CompensaQon is in a Class of its OwnThe origin of the word equity is not, as many people think, the word “equal.” In fact, its origin is almost the opposite of equal. “Equite” is a Roman word with the following definiQon: "members of a specially privileged class derived from the ancient Roman cavalry and having status intermediate between those of senatorial rank and the common people." Equity is about privilege.Looking back, horsemen have almost always been considered a privileged class. OnMORE...
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MUSINGS ON COMPENSATION AND PERFORMANCE
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Is Your CompensaQon Program the PreKest House on the Street?I live in San Francisco and as I walk the streets it is impossible to ignore the magnificent homes all over the city. There are an incredible variety of styles and many streets are lined with grand Victorian or Edwardian homes. These homes are generally two or three stories high and include many interesQng details. Some are painted in a monotone and most are painted in two or three colors (the base and the trim), but occasionally I will pass a home that stops me in my tracks. These magnificent homesMORE...
Pay for Performance OR JusQficaQon for CompensaQon? That is the QuesQon...I have recently done several presentaQon covering the possible impact on U.S.companies once Management Say in Pay (MSOP) becomes mandatory. Around the world MSOP is usually defined as a shareholder vote on compensaQon or remuneraQon pracQces. The pending Dodd-‐Frank bill includes MSOP. The current document calls for a vote on compensaQon every two or three years.In most countries with MSOP this vote is non-‐binding, but it gives voice to a powerfulMORE...
Everything in Compensa2on is Changing. Is That Such a Bad Thing?"If you're in a bad situa2on, don't worry it'll change. If you're in a good situa2on, don't worry it'll change." ~John A. Simone, Sr.There have been Qmes over the past 8 or 9 years where I felt like "Chicken LiUle" yelling that the sky was falling. Countless people have heard me, in both private and public conversaQons, selling crazy ideas like: "Say on Pay is coming"; "Performance-‐based equity is our future" and; "The compensaQon world as we know it is changing MORE...
COMPENSATION CAFE
COMPENSATION CAFE
COMPENSATION CAFE
COMPENSATION CAFE
AUGUST 2, 2010
JULY 22, 2010
JULY 9, 2010
June 28, 2010
Properly Driving Performance Can Pay for Itself 1,000 X or MoreStep right up! I want to offer you an investment where for every $1 contributed you have the potenQal of earning $1,000! In fact, each dollar may have the potenQal of earning a million dollars! While this seems unlikely, or perhaps even impossible, it is true that money properly invested in driving performance can achieve these results. What if someone showed you a way for your company to invest $200,000 and drive returns of toward $2 billion? MORE...
MUSINGS ON COMPENSATION AND PERFORMANCE
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COMPENSATION CAFE JUNE 28, 2010
Cloudtasking begins as MulQtasking becomes “old school”oday’s blog entry is not specifically oriented on equity compensaQon, but is instead oriented on how we all work today. I’m talking about Cloudtasking. Cloudtasking is my new term for working while immersed in our mulQ-‐media world. Today I noQced that I was listening to and watching an online presentaQon on webcasQng best pracQces while I was simultaneously involved in a text conversaQon on my Blackberry, a Skype conversaQon on my laptop, and a review of an old PowerPoint presentaQon. At the MORE...
Dan Walter is the President and CEO of Performensa2on an independent compensa2on consul2ng firm focused on the needs of companies not in the Fortune 1000. Dan’s unique perspec2ve and exper2se includes equity compensa2on, execu2ve compensa2on, performance-‐based pay and talent management issues, Dan is on the board of the Na2onal Center for Employee Ownership, a partner in the ShareComp virtual conferences and the founder of Equity Compensa2on Experts a free networking group. Dan is frequently requested as a dynamic and humorous speaker covering compensa2on and mo2va2on topics. Connect with him on LinkedIn or follow him on TwiSer @performensa2on.
EQUITY COMPENSATION EXPERT September 16, 2009
All ar2cles authored by Dan WalterPresident and CEO
Performensa2on Consul2ng, LLC514 Precita Ave, Suite 100 San Francisco, CA, 94110415.625.3406 (direct/mobile) | 415.821.9883 (fax)
[email protected] | www.performensaJon.comwww.compensaJoncafe.com | www.linkedin.com/in/danwalter
© 2011 PerformensaJon ConsulJng LLC. All Rights Reserved
In Pursuit of the Perfect Performance MetricWith Management Say on Pay (MSOP) rising on the horizon, we are all faced with properly implemenQng a new performance paradigm. Academic research in countries that have had MSOP for a while shows that its true impact is not changes to compensaQon levels or frequency. Its single biggest impact is the broad and increasingly deeper use of performance metrics to determine pay. This is especially true for long-‐term instruments such as equity awards and deferred compensaQon.MORE...
