Page 54 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

40 The Complete Guide to Executive Compensation

1. Define “executive” for each unit in the organization.
2. Determine the importance of the five pay elements based on type of company.
3. Determine desired market stage for each organizational unit and appropriate weighting of each
pay element.
4. Determine impact of change in organizational structure on the five pay elements.
5. Determine what changes in pay element emphasis are suggested by internal and external
considerations.

Table 1-19. Executive compensation framework action steps

With that let’s move to Chapter 2 and the measurements of performance that are in use
in the executive pay program.
Note: You should not rely on accounting, tax, SEC, or other professional services statements
in this chapter. You need to seek appropriate professional counsel for such guidance.
Statements made in this chapter and elsewhere are offered as being illustrative to help you
frame such further investigations with the help of counsel.