The
ability to assess competitive executive practices among comparable
competing organizations is available to all HR professionals and
employee benefit consultants thanks to the Internet and SEC reporting. The
proxy reporting of executive pay, along with 10-K and other materials, are
available to all professionals within seconds. Determining how much one
should pay top-level management requires more than a judgment regarding
direct pay (salary and bonus). In privately held firms today, long-term
incentives and deferred compensation plans oftentimes accumulate more
value than do direct pay. These plans often exist to match the equity
compensation rewards earned by counterparts in publicly traded
corporations. Matching the values of these plans to the rewards earned via
stock options is one of the key skills called upon by the HR professional
involved in executive compensation planning and design. Moreover, human
resources professionals today acts as consultants to their organizations. Oftentimes
they are asked their thoughts regarding competitive practices. This course introduces
the Internet resources that exist today to quickly assess
competitive executive practices, with a
focus on assessing Top Management's pay among comparable companies.
