Company boards are often faced with the task of determining CEO compensation based on incomplete information regarding their performance and competency. A study of US S&P 500 companies over a 7-year period examined the relationship between CEOs’ use of language that signals their competency and CEO compensation. The findings of this study indicated that the use of such language by CEOs was related to higher levels for CEO compensation, and this relationship was stronger when CEOs were under threat from shareholder activism.
Key Topics: CEO compensation; CEO performance; Symbolic language; Shareholder letters, Shareholder value principle
With companies now having increasingly diverse workforces, a critical question that many face is how to most effectively reward their diverse workforce in order attract, motivate, and retain top talent. A South African study examined the reward preferences of various demographic groups based on characteristics such race, gender, and age. The study results indicated that a ‘one size fits all’ approach to reward management is not effective as employee reward preferences were found to differ across demographic groups.
Key Topics: Total rewards; Demographics; Reward preferences
Companies often use incentive programs, such as cash, points, and gift cards, to provide nominal recognition to employees for good performance, although determining the most efficient method of recognition can be challenging. A French study examined differences in cash, point, and gift card recipient behaviors and found recipients of points and cash based rewards were more satisfied with their reward, while recipients of points and gift cards were more likely to tell others about their rewards.
Key Topics: Incentive programs; Cash rewards; Points rewards; Gift cards; Reward satisfaction
CEO compensation packages are becoming increasingly standardized, for various reasons, including the growing influence of external bodies on company boards of directors. A study of US CEOs over a 7-year period, which examined the relationship between CEO compensation effectiveness and their tenure, found that the motivation inducing effects of different compensation components differed depending on how long CEOs had been in their role. The results suggest that standardization of CEO compensation is not an optimal compensation strategy for companies to follow.
Key Topics: CEO tenure; CEO compensation; Shareholder returns; Performance-based compensation
What motivates employees most? Is it status or money? A recent Dutch study looked to address these very questions by examining the impact of team sales contests on sales growth in the retail sector and found that under specific conditions employees were motivated by both financial incentives and status amongst peers, but most predominantly by status. The style of manager leadership was also found to increase employee performance, with a transformational leadership style having the greatest impact.
Key Topics: Sales contests; Employee performance; Status; Incentives; Leadership style
The prevalence of employee ownership in companies has been on the rise in recent years, with companies increasingly using long term incentives and employee stock ownership plans in the belief that it will increase company performance. A comprehensive study across 14 countries looked to examine the validity of this apparent positive link between employee ownership and company performance. The results did indeed find a significant relationship between these two factors, and this positive relationship held across both publicly and privately held companies.
Key Topics: Employee ownership; Long term incentives; Company performance |
Popular Reward Chronicle Searches
Compensation. Pay for performance Benefits Millennials Exec compensation Motivation Gender Topics
All
Join The Reward Chronicle Team
Are you passionate about reward? We’d love to hear from you. Click here for more details on how to contact us. |