Tag: Variable Compensation

Link Variable Compensation To Desired Outcomes

Link Variable Compensation To Desired Outcomes

Too few CEOs fully leverage the power of variable compensation to drive desired employee behavior and outcomes Last week we discussed the AI CEO vs. the Cyborg CEO. Assuming we could build a CEO with perfect intelligence there remains the question of how that CEO should communicate with his/her direct reports and employee base so … Continue reading Link Variable Compensation To Desired Outcomes

Innovation Does Not Happen In The C-Suite

Innovation Does Not Happen In The C-Suite

Read on for our "Tip for Investors" CEOs and CFOs can help spur innovation by creating a culture that values innovation. One such example is tying a portion of variable compensation to new product development (thinking of Tech companies). However, it is the Business Unit leaders and Product Managers ("PMs"), in particular that are responsible … Continue reading Innovation Does Not Happen In The C-Suite

CVS Health: An Example of Ineffective Executive Compensation Management

CVS Health: An Example of Ineffective Executive Compensation Management

CVS Health (ticker: CVS) provides an example of ineffective executive compensation management. Compensation should reward past performance and encourage behavior that drives desired future results. CEO total compensation growth should not outpace revenue growth nor operating cash flow growth over time. We prefer operating cash flow as a performance metric over Adjusted EBITDA as some … Continue reading CVS Health: An Example of Ineffective Executive Compensation Management

Tesla’s $2.3 Billion CEO Compensation Package

Tesla’s $2.3 Billion CEO Compensation Package

Tesla CEO Elon Musk's $2.3 Billion compensation package is an example of poor corporate governance and a self-serving Board (ACCESS Our Commentary HERE). For examples of how to run a business well and fairly compensate CEOs for performance - look no further than CoStar (tkr: CSGP) and SS&C (tkr: SSNC). Our CSGP and SSNC data … Continue reading Tesla’s $2.3 Billion CEO Compensation Package