Ericson, Richard N

The New Standards: Methods for Linking Business Performance and Executive Incentive Pay

Ericson, Richard N - The New Standards: Methods for Linking Business Performance and Executive Incentive Pay, ebook


Ebook, ePUB with Adobe DRM
ISBN: 9780470616123
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Make the most of the new standards

Every year companies spend millions of dollars on executive incentives. All too often, however, these programs provide a very weak link between pay and performance, with executives potentially rewarded as much for bad decisions as they are for good ones.

Packed with examples, The New Standards insightfully discusses:

  • How to link pay with business results that create long-term value

  • Why incentive structures can discourage management from reasonable risk-taking, in some cases, and can enocourage imprudent risks in others

  • The full range of inputs that should guide proper incentive policy

  • Why performance measures must reflect both the quality and quantity of earnings

  • Risk, executive behavior, and the cost of capital

  • How to use valuation criteria when choosing metrics

  • The pros and cons of common approaches to stock-based incentive pay

Written by noted compensation expert Richard Ericson, this innovative book is a must-read for directors and management concerned with executive compensation design or financial performance measurement and forecasting. Get the guidance and concrete solutions you need to thoroughly reexamine your executive compensation policies and practices with the principles and financial maxims found in The New Standards.

Keywords: executive incentive, executive incentives, executive compensation, compensation, bonus, bonuses, performance-based plans, value-based performance measures, performance measurements, performance measurement, incentive structure, incentive design, performance metrics, Effective Executive Compensation, The Compensation Handbook, An Introduction to Executive Compensation, Governance Corporate governance, Agency theory, Performance metrics, Performance measures, Financial metrics, Financial measures, Corporate performance measurement, Compensation committee, Incentive design, Incentive policy, Talent management, Attraction and retention of executives, Performance standards, Standard setting, Target setting, Performance targets, Incentive calibration, Payout calibration, Incentive communication, Incentive costs, Compensation benchmarking, Risk management, Balancing risk and return, Cost of capital, Value-based metrics, Value-based incentives, Shareholder value, Business valuation Business appraisal, Stock valuation, Forecasting, Business planning, Adaptive targets, Flexible targets, Target setting algorithms

John Wiley and Sons, Inc.
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Page amount
368 pages
Printed ISBN

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