Page 615 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Chapter 10. The Board of Directors 601

For Salary
Action Basis Proposed by Approved by
Obtain competitive Comparable size/ Director, Compensation Executive compensation
data industry and Benefits committee (corporate
Division VP HR officers)
Director, Compensation
and Benefits (all others)
Approve job Competitive data CEO (corporate officers) Executive compensation
gradings Internal equity Director, Compensation committee
and Benefits (others Employee compensation
above $100,000) committee
Division VP HR (those Director, Compensation
below $100,000) and Benefits
Approve salary Competitive data CEO Executive compensation
structure and Director, Compensation committee (corporate
guidelines and Benefits officers)
Employee compensation
committee (all others)
Allocate divisional Compa-ratio Director, Compensation Employee compensation
salary budgets Unit performance and Benefits committee
Approve salary Unit and individual Immediate supervisor Executive compensation
changes performance ↓ committee (corporate
Division president officers)
Employee compensation Employee compensation
committee committee (except
corporate officers)
For Employee Benefits

Obtain competitive Comparable size/ Director, Compensation Employee compensation
data industry and Benefits committee
Amend pension Competitive data VP HR/Finance Board of directors
plan Employee attitude ↓
surveys Employee compensation
committee
For Long-Term Incentives

Obtain competitive Comparable size/ Director, Compensation Employee compensation
data industry and Benefits committee
Amend plan Competitive data VP HR/Finance Shareholders
Company ↓
performance Employee compensation
committee
↓
Executive compensation
committee
Board of directors

Table 10-8. Action responsibilities (Continued on next page)