Thursday, October 05, 2006
The Opposite Of Pay For Performance
The opposite of a pay for performance program is to simply just pay. Paying for performance means that you get rewarded when you perform. Of course, the metrics for performance must correspond to your overall productivity. Today's CEO is simply getting paid.
This isn't paying for performance. Just saying it doesn't mean a thing.
Today's CEO is making real pay for performance programs look bad.
P.S. This may be a little too biznussee....but what if today's CEO got paid based on their cash flow stream? You can manipulate earnings, but you can't hide dollars and cents. You either got one dollar going in or one dollar going out? Wouldn't that solve everything?