Page 666 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)

Chapter 12

Summaries

T his chapter is a summary of the various chapter summaries. As indicated in the
preface, some may want to read this chapter first because it gives an overview
of the book. For those who will read the book in the more traditional way, this
chapter highlights what has preceded—it is not simply a reiteration of each
chapter summary.

CHAPTER 1: EXECUTIVE COMPENSATION FRAMEWORK
This chapter defined both executive and compensation and then viewed key items that affect the
shape of executive pay: strategic thinking, market lifecycle, organizational structure change,
and the types of companies.

CHAPTER 2: PERFORMANCE MEASUREMENTS AND STANDARDS
A pay-for-performance pay program requires identifying what performance will be measured,
and how and when it will be measured. Financial performance, nonfinancial performance, and
combinations of the two were examined. Use of performance of the individual, the group, and
combinations were reviewed. The use of targets versus performance relative to others was also
examined. The most appropriate types of measurements for salary and both short-term and
long-term incentives were analyzed.

CHAPTER 3: CURRENT VERSUS DEFERRED COMPENSATION

This chapter distinguished between voluntary and involuntary deferrals and examined the
types of deferrals (i.e., funded vs. nonfunded, qualified vs. nonqualified, and forfeitable vs.

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