E-mail this page				Print this page

Contact: Mercer Feedback

Singapore
Singapore, 23 September 2009

Corporate governance and shareholder transparency have become increasingly important as the debate over executive compensation comes under unprecedented public, shareholder, regulatory and legislative scrutiny. Organizations are now being forced as never before to defend head-on their performance measurement practices and to ensure that their remuneration programs are reasonable to all stakeholders.

Pay for Results: Aligning Executive Compensation with Business Performance is a timely book, authored by 14 Mercer compensation consultants from around the world, which addresses the most important issues now facing HR, compensation, and finance executives and boards of directors. The book provides a practical and comprehensive set of guidelines to consider in developing and implementing executive incentives that help drive superior business results.

Based on Mercer research and client case studies, Pay for Results provides practical guidance on how to design a remuneration plan that builds competitive and strategic advantage. Starting with business strategy, the book takes into account everything from the selection of appropriate metrics and target setting to assessing the probabilities of outcomes and calibrating remuneration to ensure that the pay is commensurate with results. The book contains specific analytic tools including tables, exhibits, forms and checklists that help organizations to ensure that remuneration programs are motivational, fair and defensible. 

“Pay for Results is an essential resource for executives as it provides a road map for performance measurement strategy and design,” says Diane Doubleday, global leader of Mercer’s executive remuneration business, and editor of the book. “It helps organizations avoid certain problems by considering the factors that lead to the right measures and right results.”

Asia business leader with Mercer's executive remuneration business, Zheng Wei commented, “Organizations in Asia face similar executive remuneration challenges as their Western counterparts. As such, this book will be a valuable and timely resource for the region’s HR practitioners, providing practical guidelines to executive incentive program design that are reasonable to all stakeholders.”

About the book

Providing Pay for Results explores several topics including:

• The evolving governance paradigm – Understand how executive compensation decision-making is changing and review key trends impacting executive remuneration around the globe.

• The definition of good performance – Identify organizational stakeholders and explore competing definitions of “good” performance.

• Performance as value creation – Understand the link between internal and external value creation and learn the basic requirements for fair and accurate performance measurement.

• An introduction to Mercer’s performance framework – Explore the key dimensions of performance measurement, including: growth, profits, returns, and shareholder experience.

• The science and art of metric selection – Understand how to combine qualitative research and qualitative analysis to identify the key drivers of business success.  Consider the trade-offs between accuracy and complexity in selecting performance metrics. 

• Peer comparison – Establish criteria for selecting peers by using markets, size and business characteristics and learn how peer groups can be used to evaluate pay and performance.

• Taking the guesswork out of target setting – Explore different strategies for setting performance targets based on business context and availability of data and consider the advantages and challenges of relative performance measurement.

• Calibrating pay and performance – Learn how to determine the appropriate relationship between risk and reward for your company by considering factors such as business strategy and talent requirements. Calibrate threshold and upside performance targets to achieve the desired leverage in your incentive plans.

• Designing incentive plans for maximum flexibility – Learn how to use simulation modeling to assess the value and opportunity associated with various compensation vehicles and review techniques that can be used to ensure that incentive plans remain relevant – even in unprecedented times.

Note to editors

Copies of the book are available directly from Wiley Publishing ISBN: 978-0-470-18390-8 ($65.00) or at a discounted price from leading online booksellers. Visit www.mercer.com/payforresults to download the table of contents, a free copy of Chapter 1 and related articles written by Mercer authors.

Alternatively, if you would like to review a copy of Pay for Results for your publication, please contact Melinda Earsdon on +65 6398 2842 or email melinda.earsdon@mercer.com. We will send you a copy free of charge.

About the authors

Mercer’s executive remuneration consultants are trusted advisors to leading companies globally. They consider the business, performance, regulatory and governance implications of executive total remuneration in conjunction with the objective of designing responsible executive plans that drive business performance and value creation, secure key talent and withstand external scrutiny.

The 14 contributing authors from the United Kingdom, United States, Canada, Australia, Mexico and Switzerland are: David Carlin, Diane L. Doubleday, William H. Ferguson, Thomas Flannery, Yolande Foord, Bruce D. Greenblatt, Michael J. Halloran, Mark W. Hoble, Martin M. Ilanez Frocham, Daniel S. Laddin, Gregg H. Passin, Piia Pilv, Lisa M. Slipp, and Jennifer Wagner.

E-mail this page

Print this page

Contact: Mercer Feedback