[Author’s Name]
[Institution’s Name]
Essay on Executive Compensation and Organizational Performance or Stock Performance
Is your company stuck with underwater options and incentive plans that didn't pay off as expected? If the answer is yes, this means your stock is not performing as hoped. It also means you're missing the financial goals that generate dollars for executive incentives. So it's bad news for two key stakeholders-your management team and your shareholders in general. It's time to get your incentive design engine into gear so you have time to do what's necessary to pull yourself out of a jam.
Right after we put more stock and stock options in the hands of people at all organizational levels. Neither the executives nor the workforce in general are winning from options. The economic slowdown came right on the heels of making annual cash incentives available to more people than ever before. It looks like a disaster in the making-just when organizations were beginning to use more creative reward solutions to link executive performance with business goals in a meaningful fashion. Imagine-the changing economic scene re-landscaped rewards. Most companies can't go back to the reward solutions that characterized the last decade. These solutions added little to creating a positive business atmosphere where executives are rewarded for adding value (Treacy, 65).
In most organizations many people work in executive jobs that somebody decided should exist but that don't add value in terms of business value. For example, some executives get pay raises just for being around another year. Look at most executive performance appraisal tools. Seldom do they evaluate value-added to the business. And they commonly don't apply at all organizational levels no matter how ineffective they may be. Rather they rate cooperation, teamwork, attendance, and stuff like that which should be the basics of even having the job. Not performance things (Fore, 85)............
