{"id":827,"date":"2007-04-17T11:03:53","date_gmt":"2007-04-17T16:03:53","guid":{"rendered":"http:\/\/selectmetrix.com\/blogs\/2007\/04\/compensation-limitations\/"},"modified":"2007-04-17T11:03:30","modified_gmt":"2007-04-17T16:03:30","slug":"compensation-limitations","status":"publish","type":"post","link":"http:\/\/selectmetrix.com\/blogs\/2007\/04\/compensation-limitations\/","title":{"rendered":"Compensation Limitations"},"content":{"rendered":"<p>The illustrious Mr. Hammer has been attempting to illicit a response from me regarding Executive Compensation. His latest post <a href=\"http:\/\/selectmetrix.com\/blogs\/2007\/04\/why-executive-salary-caps-dont-work\/\" title=\"Permanent Link- Why Executive Salary Caps Don\u20ac\u2122t Work\">Why Executive Salary Caps Don\u20ac\u2122t Work<\/a> requires a response.<\/p>\n<p>Maybe I missed it in his post, but, I don&#8217;t see where Mr. Hammer separates the &#8220;Public&#8221; domain from the &#8220;Private&#8221; domain. Two very different worlds.<\/p>\n<p>First a confession. I&#8217;ve been known to manage and exploit a compensation plan to it&#8217;s fullest. Actually, I am quite proud of the fact that I&#8217;ve made some CEO, CFO and HR types very, very unhappy. Getting the most out of a compensation plan is EXACTLY what you should expect from a top-level sales person. Exactly why a solid compensation plan is the very foundation of  assembling a top notch sales organization &#8211; from top to bottom. A well designed compensation plan will direct behavior and result in the desired outcome.<\/p>\n<p>Executive Compensation is, in my mind, an entirely DIFFERENT matter. In the private sector? No holds barred. Do what you like, as long as it&#8217;s legal. Compensate any way you like and in any amount.<\/p>\n<p>In the Public sector, the rules are &#8211; and should be &#8211; different. That&#8217;s why the SEC and several other agencies exist. (Don&#8217;t get me wrong, I&#8217;m not a regulation proponent)<\/p>\n<p>The &#8220;C&#8221; level pay in public companies deserves the attention and scrutiny it&#8217;s receiving from the media. Why? Because the deck is stacked by the key shareholders and their cronies placed on the compensation committee.<\/p>\n<p>As an example, the &#8220;minority&#8221; share holders (people like you and me) of a very large national homebuilder attempted to have the compensation of the CEO brought in to line. We all know the status of the home building industry&#8230;. The result  &#8211; the largest shareholders (primarily the &#8220;family&#8221;management) squelched the attempt. Today the CEO continues to be one of the highest paid CEO&#8217;s in the nation. The share price has dropped by 50%, earnings are down and write-offs are ridiculous (probably means they won&#8217;t be paying much in the way of taxes, either). To this the Velvet Hammer says &#8220;Sell the stock if you don&#8217;t like it!&#8221;<\/p>\n<p>The rumor on the street is &#8220;Class Action Suit.&#8221; Maybe the system works better than I thought? Maybe I should have been a lawyer?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The illustrious Mr. Hammer has been attempting to illicit a response from me regarding Executive Compensation. His latest post Why Executive Salary Caps Don\u20ac\u2122t Work requires a response. Maybe I missed it in his post, but, I don&#8217;t see where Mr. Hammer separates the &#8220;Public&#8221; domain from the &#8220;Private&#8221; domain. Two very different worlds. First a confession. I&#8217;ve been known to manage and exploit a compensation plan to it&#8217;s fullest. Actually, I am quite proud of the fact that I&#8217;ve made some CEO, CFO and HR types very, very unhappy. Getting the most out of a compensation plan is EXACTLY what you should expect from a top-level sales person. Exactly&hellip; <a class=\"read-more\" href=\"http:\/\/selectmetrix.com\/blogs\/2007\/04\/compensation-limitations\/\">Read More<\/a><\/p>\n","protected":false},"author":19,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"bgseo_title":"","bgseo_description":"","bgseo_robots_index":"","bgseo_robots_follow":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[20,23],"tags":[],"class_list":["post-827","post","type-post","status-publish","format-standard","hentry","category-compensation","category-retention"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p5Oho-dl","jetpack-related-posts":[{"id":1676,"url":"http:\/\/selectmetrix.com\/blogs\/2008\/07\/compensation-consternation\/","url_meta":{"origin":827,"position":0},"title":"Compensation Consternation","author":"Derrick Moe","date":"July 25, 2008","format":false,"excerpt":"I know, lame title, but I couldn't resist. ManageSmarter.com offers up this article - Compensation Complexity Hinders Sales - regarding current compensation plans.\u00a0 Here are some numbers they quote within the article (my editing): Only 41% of sales leaders were satisfied with their current compensation plans (down from 59% two\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1328,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/12\/compensation-keep-it-simple\/","url_meta":{"origin":827,"position":1},"title":"Compensation &#8211; Keep It Simple","author":"Derrick Moe","date":"December 10, 2007","format":false,"excerpt":"Every year we find December to be a fertile time for sourcing salespeople.\u00a0 One of the biggest reasons - the upcoming year's compensation plan.\u00a0 More specifically, new commission plans tied to new quotas.\u00a0 The salespeople receive the new plan and are, well, disgruntled.\u00a0 Or ticked off. Good salespeople tend to\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":826,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/04\/why-executive-salary-caps-dont-work\/","url_meta":{"origin":827,"position":2},"title":"Why Executive Salary Caps Don&#8217;t Work","author":"Derrick Moe","date":"April 17, 2007","format":false,"excerpt":"The title of this post is a shot across the bow of Red Bird since he and I go toe-to-toe on this topic. I am a strong proponent of letting the market determine executive pay. I trust the market as the best arbitrator of compensation. The principle works every time\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":836,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/04\/compensation-limitations-part-deux\/","url_meta":{"origin":827,"position":3},"title":"Compensation Limitations Part Deux","author":"Mike Cardinal","date":"April 18, 2007","format":false,"excerpt":"As you would expect, my interpretations of the articles referenced by Herd Enuff's comment are much different than the musings of the young lad known as the Velvet Hammer. I'm assuming the young lad chooses to ignore the aforementioned differences between the private and public sector for a reason. Perhaps\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":802,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/04\/sales-manager-compensation-for-retention\/","url_meta":{"origin":827,"position":4},"title":"Sales Manager Compensation for Retention?","author":"Mike Cardinal","date":"April 4, 2007","format":false,"excerpt":"A recent conversation brought to mind the responsibility of sales management for the development of both existing and new sales people. Why? Retention. As the employment market has shifted to an \"employee market\" - at least for talented sales professionals - sales management needs to make plans to retain sales\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":783,"url":"http:\/\/selectmetrix.com\/blogs\/2007\/03\/show-me-the-time-compensation\/","url_meta":{"origin":827,"position":5},"title":"Show Me The Time Compensation","author":"Mike Cardinal","date":"March 28, 2007","format":false,"excerpt":"In the 1996 movie Jerry Maguire, Tom Cruise made the phrase \"Show me the money\" famous. In fact, the phrase has become an American icon in several ways. Eleven years later, it appears candidates are saying \"Show me the time.\" Time off for family, friends and fun. According to a\u2026","rel":"","context":"In &quot;Compensation&quot;","block_context":{"text":"Compensation","link":"http:\/\/selectmetrix.com\/blogs\/category\/compensation\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_featured_media_url":"","_links":{"self":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts\/827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/comments?post=827"}],"version-history":[{"count":0,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/posts\/827\/revisions"}],"wp:attachment":[{"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/media?parent=827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/categories?post=827"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/selectmetrix.com\/blogs\/wp-json\/wp\/v2\/tags?post=827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<!-- WP Super Cache is installed but broken. 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