Paying for performance

This second edition revises a handbook on structuring pay so that it supports a company's goals. Its authors, consultants at Mercer Human Resource Consulting, Inc., a major human resources firm, argue that compensation can do more than recruit and keep senior staff. Well-built pay arrangements can also help a business compete more effectively over the long term.

The book walks readers through building and putting into practice a pay program. It explains how shareholder expectations, government regulation, and wider business and personnel concerns shape those decisions. Its guidance covers base salary, annual incentives, and long-term rewards, and it offers tools for handling pay questions both now and in the years ahead.

Illustrating its advice are case studies drawn from Mercer's research, along with examples of practices used by high-performing American companies. The text also looks at the particular challenges of tying pay to performance in not-for-profit organizations, and it discusses how to manage talent and skills to get the most out of employees. Regulatory issues affecting executive compensation receive dedicated attention.