Pay for Results - Compensation & Benefits - Human Resources

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Pay for Results

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The numerous incentive approaches and combinations and their implications can be dizzying even to the compensation professional. Pay for Results provides a road map for developing and implementing executive incentives that drive business needs and strategy. It is filled with specific analytic tools, including tables, exhibits, forms, checklists. In addition, it uncovers myths in performance measurement strategy and design. Timely and thorough, this book expertly shows businesses how to drive their specific needs and strategy. Human resources and compensation officers will discover how to apply performance metrics that align with shareholder investment.

Preface.

Chapter 1: A new day: The call for a demonstrable link between pay and performance.

Executive Compensation.

Achieving the Right Balance of Interests.

Performance Measurement as the Key to Good Governance.

Change is in the Air.

Pay for Performance Today.

Bringing Defensibility to Executive Compensation.

Chapter 2: The Million Dollar Question: What is Good Performance?

Performance as Value Creation.

No Magic Number.

Requirements for Effective Performance Measurement.

Metric Selection.

Linkage.

Goal Setting.

Time Horizon.

Striking the Right Balance.

Chapter 3: Back to Basics: An Introduction to Mercer's Performance Framework.

Why Manage for Shareholder Value.

Systems Thinking.

Alignment of Internal and External Value Definitions.

Value Creation Demystified.

Balancing Growth and Returns.

Mercer's Performance Measurement Framework.

Case Study: Performance Measurement at Manufacture Co.

One Size Doesn't Fit All.

Chapter 4: Trust, but verify: Bringing defensibility to performance metric selection.

Metric Selection In A Nutshell.

Market Research – A Limited, but Informative Tool.

The Science of Metric Selection.

The Art of Metric Selection.

A Balancing Act.

Chapter 5: Making it count: The case for the unbalanced scorecard to drive behavior.

Try, Try Again.

From Solutions to Guiding Principles.

Make it Motivational.

Make it Meaningful.

Make it Fair.

The Future of Scorecards.

Custom Solutions.

Chapter 6: There's nobody quite like us: The ins and outs of meaningful peer comparison.

Why Peer Groups?

Screening for Peers.

Desperately Seeking Peers.

When One's Not Enough.

Maintaining Peer Groups.

Peer Groups in Practice.

What's Next.

Chapter 7: You don't need a crystal ball: Taking the guess-work out of target setting.

What's Fair?

Setting Performance Targets.

Internal Target Setting.

Externally Informed Target Setting.

Relative Target Setting.

Requirements of Relative Target Setting.

No Simple Answers.

Chapter 8: Passing the big test: Calibrating pay and performance.

Incentive Plan Leverage.

Leverage and Long-Term Incentive Vehicles.

Leverage and Goal Setting.

Simulation Modeling.

Maximum Award Caps.

Assessing Plan Costs for Reasonableness.

Passing The Big Test.

Chapter 9: Now what? Avoid managing by exception.

Designing Incentive Plans for Maximum Flexibility.

Dealing with Unavoidable Adjustments.

The Question of Discretion.

Dealing with Business Change.

Walking a Fine Line.

Chapter 10: More than the sum of its parts: Bringing it all together.

Getting Started.

The Implementation Road Map.

The Benefits of a Performance Measurement Mindset.

Bringing it all Together: A Performance Measurement Checklist.

Index.

Mercer is a leading global provider of consulting, outsourcing, and investment services. Mercer works with clients to solve their most complex benefit and human capital issues, designing and helping manage health, retirement, and other benefits. It is a leader in benefit outsourcing. Mercer's investment services include investment consulting and multi-manager investment management. Mercer's 18,000 employees are based in more than forty countries. For more information, visit www.mercer.com