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CEO Update LIVE: Why incentives are increasing as part of compensation

Forum panelists say limited leadership talent pool, influx of industry executives with greater expectations is helping drive variable compensation higher. “(At-risk) pay at large trade associations is going up in some cases to almost 100 percent,” said Charlie Quatt, of compensation consulting firm Quatt Associates. “This is the future of compensation.”

Growth of at-risk pay heightens focus on metrics

With at-risk pay becoming a greater portion of executive compensation, the metrics used to determine incentive pay are growing more sophisticated. CEOs should take an active role in creating their performance measures and make sure clear priorities are established. “An increasing number of organizations are putting together a more stringent set of measures,” said Stephanie Tomasso of Russell Reynolds Associates.


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