Designing Pay-for-Performance Plans for Executives and Salespeople
Executives and salespeople are normally treated very differently than most other types of workers in pay-for-performance plans. Because pay incentives are an important component of these employees’ total compensation, it is useful to examine their special compensation programs in some detail. It is also useful to examine how companies are rewarding excellence in customer service—a key source of competitive advantage today.
Executives
According to most recent figures, the median chief executive of a United States company with more than five billion dollars in revenues earns about $14 million per year; however, some can pocket more than $100 million.80 CEO pay creates a lot of controversy ...
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