Page 218 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

204 The Complete Guide to Executive Compensation

Descriptor Rating

Outstanding 3.6–4.0
Superior 2.6–3.5

Good 1.6–2.5
Marginal 0.6–1.5

Unacceptable 0.0–0.5

Table 5-21. Key word vs. numerical performance rating

An alternative is the seven-level rating scale shown in Table 5-22. Here both a numeric
and verbal rating are identified along with a brief, descriptive definition. Note that there are
two variables identified: degree of attainment and degree of difficulty.
A variation of Table 5-22 is shown in Table 5-23. Here a “promotability” factor has been
added, also resulting in scores ranging from 0 to 6. This works better below the executive
ranks. For most highly ranked executives, the possibility for additional promotion is slim. For
the chairman and CEO, it is nonexistent.

Rating

Numeric Verbal Objective Attainment
6 Outstanding Significantly surpassed or
surpassed over major obstacles
5 Superior Surpassed over obstacles or
achieved over major obstacles
4 Very Good Surpassed or
achieved over obstacles or
almost achieved over major obstacles
3 Good Achieved or
almost achieved over obstacles or
partially achieved over major obstacles

2 Acceptable Partially achieved or
little accomplishment over major obstacles
1 Marginal Little accomplished or
nothing accomplished over major obstacles
0 Unacceptable Nothing accomplished

Table 5-22. Performance ratings, seven-scale