Page 792 - Bruce Ellig - The Complete Guide to Executive Compensation (2007)
P. 792
Index 777
Historical targets, 70 fund formula considerations, 371–72
HMO. See Health maintenance goal-sharing plans, 370
organizations goals by organizational level, 385–89
Holiday gifts, as a company perquisite, 259 guaranteed bonuses, 396
Holidays, 229–30 hiring bonuses, 396
Holographic wills, 253 identifying divisional goals, 374
Home entertainment, reimbursement for, impact of minimum performance,
265 377–79
Home health care, as a company benefit, individual performance only, 390
271–72 leave bonuses, 396
Home security, as a company perquisite, measuring divisional performance,
257 374–75
Homeowners’ insurance, 247 midpoint vs. actual pay, 391
Hotel rooms, during company travel, 263 negative discretion formula, 363
nonfunded plans, 361–62
organizational level, 376–77
I
performance-sharing plans, 370
Imputed income, 146, 279 recognition awards, 398
Inappropriate behavior, among executives, responsibility level, 376
116 retention awards, 396–97
Incentive awards, 345–401 shareholder protection plans, 368–69
assessing divisional performance, 373 special accomplishment award, 395–96
the balanced scorecard, 393–95 structuring payouts, 379–85
benefit plan impact, 398 target plans, 370–71
bonus as a percentage of CEO’s award, target vs. no-target funded plans,
391–92 370–71
bottom-up plans, 360 testing the fund formula, 369–70
carryover provisions, 372 top-down plans, 360
contest awards, 397 transaction awards, 397
corporate own unit, 375–76 transition awards, 397–98
deductible vs. nondeductible fund upside opportunity, 350, 550
formulas, 365–67 year-to-year pay comparison, 392–93
developing the fund formula, 369 Incentive pay
discretionary funded plans, 362–63 advantages of, 535
divisional, 373–75 considerations for, 534–36
divisional performance factors, 373–74 disadvantages of, 535
divisional vs. corporate emphasizing, 549
divisional vs. individual performance, repaying, 550
389 Incentive plans
downside risk, 350, 550 cost of, 555–56
economic profit plans, 367–68 cost of capital, 552
economic value added, 367 cost to company vs. value to the
economic value lost, 367 individual, 552
executive succession award, 396 desired outcomes, 557–58
formula funded plans, 363–65 factors measured, 552–53
