Implementing Pay for Performance: A Practical Guide

Take your measurement practices and executive remuneration programs to a new level Change is in the air, and companies must meet the challenge of performance measurement head-on to ensure that their remuneration programs are reasonable and defensible to all stakeholders. Authoritatively written by Mercer, Pay for Results is a go-to resource for directors and management to partner together to make pay for performance a reality before regulatory and legislative bodies and shareholders take matters into their own hands. A wake-up call for a demonstrable link between pay and performance, this essential resource for HR, compensation, and finance executives illustrates how to apply performance metrics that align with shareholder investment and strengthen the incentive program business case. Pay for Results equips you with the necessary tools to: Abandon the guesswork and start making informed decisions based on hard research, in-depth quantitative analysis, and intelligent discussion Stop working backwards by agreeing on a definition of value for your organization up front Use business strategy as the basis for selecting performance metrics, rather than relying on what competitors or analysts tell you to measure Use both internal planning and external trends and economic data to set externally informed performance targets that will motivate your executive team to shine-and let your shareholders sleep at night Test the relationship between award and performance levels thoroughly to make sure that pay outcomes will be reasonable under all performance scenarios-both strong and weak Make your measurement system a high-impact one by anticipating problems before they happen and investing the necessary time and resources in implementation Based on Mercer research results and client case studies, Pay for Results provides executives with a practical benchmark to follow in developing and implementing executive incentives that help drive business needs and strategy.Chingos, Peter T. is the author of 'Implementing Pay for Performance: A Practical Guide', published 2009 under ISBN 9780470183908 and ISBN 047018390X.