From Bonus Discretion to Incentive Design: Implementing a Structured Program
Discretionary bonus plans have their time and place in an organization. Discretionary bonuses are a plan in which management determines the size of the bonus pool and the amounts to be allocated to specific individuals at the end of the year. They work well when the...
Developing Effective Qualitative Goals
When More Than Quantitative Incentive Criteria is Needed It is a common practice to select between two to five metrics to use for incentive criteria. Incentive criteria are usually a combination of financial, non-financial and strategic metrics. When the eligible...
Aligning Long-term Incentives with Corporate Culture
by Tom Wilson One of Peter Drucker’s notable expression was: “Culture eats strategy for breakfast.” In fact, culture shapes behaviors, where plans and structures only attempt to influence them. Long-term incentives, compensation programs tied to a company’s future,...