The big executive compensation increases probably came to shift compensation from performance based compensation to salary based compensation.
The pay strategy must reward ethical behavior and correlate total salary with performance.
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The company also got rid of the distribution curve and individual performance bonuses, instead giving everyone an 8% salary bump, as well as group performance bonuses and stock options.
Mr Schrempp talks about overcoming this with a low basic salary and a high performance-based bonus.
On the issue of pay, a spokesman said its chief executive's salary was "strongly performance-related" and had the backing of ministers.
Since ballplayers are not pure commodities--service time counts as much as past performance in the league's salary structure--finding those solid contributors for little money can be the difference between a decent team and a champion.
Others would suggest home schooling or getting rid of tenure for public school teachers and tying teacher salary much more to the performance of schools.
Some corporate boards ought to at least consider a return to what was once the norm in both America and Europe (and still is in Japan) and largely ditch pay-for-performance and instead pay largely through a straight salary (most lower-level employees are paid this way).
And--also like most workplaces--a high salary does not always reflect a superior performance.
When hiring decisions and salary increases are not based on student performance, schools are virtually certain to be misallocating capital.
His pay package includes salary and a cash bonus linked to performance, plus a big cut of the options plus more traditional perks like a car and membership in a country club.
Ms. Spence entertained several endorsement offers but signed with Brooks because, among other reasons, it offered stability through a base salary that isn't pegged to her performance.
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He could still be entitled to his long-term incentive plan, which is broadly based on the bank's long-term performance and is worth up to 400% of his salary, if the Barclays remuneration committee awards him one.
But setting a low base salary and paying a larger part of compensation in performance-related bonuses might not be effective either.
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The rest comes from a salary and some kind of bonus usually based on performance measures, such as earnings, and drawn straight from the published accounts.
How else does one expect these people to stay on for a pittance in salary while restructuring in bankruptcy where they would be no performance pay.
And he said the new performance-related pay system for teachers at the top of the basic salary scale would make "a substantial difference" in the longer term.
In the 1970s and early 1980s, executives were paid primarily by salary and bonus, which varied only slightly with their company's performance.
There is a base salary, and a far more lucrative financial incentive through bonuses and stock options based on performance.
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In 2005 Lankford ditched a comfortable salary, hired away an engineer from Reuters and went hunting for consulting gigs optimizing speed performance for trading firms and hardware vendors.
In addition to general oversight, the board's other key responsibility is to establish salary and other compensation levels for the key officers at rates that are in some way tied to performance.
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