Executive compensation LO6440

MONOKY ASSOCIATES (73572.1072@compuserve.com)
05 Apr 96 10:25:23 EST

Replying to LO6373 --

this may be answering more to Rol than Keith. being new i didn't receive
rol's original, but keith sent at least part of it.

[Host's Note: Old msgs can be found in the archive via the web



similar to setting the systems to allow empowerment. whoever the manager
reports to must set the compensation policy. and keep i mind that a
compensation policy is only part of managing or directing (not getting too
tied up in semantics).

but yes a long-term compensation policy be one good step in getting rid of
the short-term mindset. the important part of the compensation is to make
sure that it corresponds as closely as possible, without getting anaylsis
paralysis, to the organizations' goals. the easiest way is usually not
the best, and there are a variety of issues compensation can be tied to.

of course, also remebering that you must keep in mind the goals of the
company as well as the manager. any group is a collection of individuals,
many with their own goals. of course, this needs to be taken into
consideration when chosing a person. it may be harder to set long-term
goals for some (e.g., one hoping to retire soon). doing your heomework
ahead of time will help alleviate some of these problems. but no system
will be perfect. maybe most important is that the policies are reviewed
by someone/group will to open their mouth when change is needed. and the
goals of almost all organizations evlove as priorities are changing more
quickly all the time.

bob savage
monoky associates


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