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Commentary: The Artificial Sweetener in CEO Pay

Commentary: The Artificial Sweetener in CEO Pay. Pay for Performance or Competitive Benchmarking. Pay for Performance is being replaced by Competitive Benchmarking strategies when it comes to CEO pay.

cecilia-lancaster
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Commentary: The Artificial Sweetener in CEO Pay

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  1. Commentary: The Artificial Sweetener in CEO Pay

  2. Pay for Performance or Competitive Benchmarking Pay for Performance is being replaced by Competitive Benchmarking strategies when it comes to CEO pay. Organizations are now paying underperforming CEOs more due to the competitive nature of executive talent. Competitive Benchmarking is weakening the link between pay and performance.

  3. Suggested Solutions Companies are not doing shareholder a favor by increasing an underperforming CEOs pay. Pay the CEO exactly what he or she is worth. Send a powerful message that poor performance will not be tolerated. Some will comply and others will leave.

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