Today's organizations are under intense pressure and unprecedented scrutiny to redefine their standards for accountability when determining executive compensation.
Fair Pay, Fair Play offers organizations,including board members, executives, HR and compensation professionals, and investors a new way to think about executive compensation; suggests a model for establishing common standards of fairness and propriety; and shows how to develop a more efficient market for executive talent. Fair Pay, Fair Play adheres to the overriding objective: "executives should be paid on the basis of how well they perform for their shareholders, relative to the external market, within contemporary standards of fairness and propriety."
In this groundbreaking work, noted executive compensation expert Robin Ferracone combines her more than thirty years experience to provide a clear examination of executive pay and offer guidance on how to determine fair pay packages, suitable actions, and appropriate designs. Fair Pay, Fair Play draws on a database comprised of over 44,000 cases, broken down by company revenue, industry group, and company performance. Using these data, Ferracone provides all those charged with evaluating executive pay with the ability to analytically determine an appropriate compensation package. In addition, Fair Pay, Fair Play is filled with real-life stories, perspectives, and insights from thought leaders on executive compensation including interviews with board and compensation committee members, executives, academicians, government leaders, and shareholder activists.
This innovative book offers hope that organizations in the future will rely on inspiration and talent development, in addition to compensation, to attract, motivate, focus, and retain exceptional executives.
"I like the way that Ferracone tells real-world stories on executive compensation, as recounted by board members and executives on the front lines, and she backs up these narratives with well-researched statistics. Her way of looking at performance-adjusted pay is highly innovative and offers insights that we had previously not seen."
—Roy J. Bostock, non-executive chairman of the board, Yahoo! Inc.
"This book is the best authoritative source on executive compensation today. It takes an extremely complex topic and boils it down to its simplest terms: alignment between pay and performance. Ferracone's Alignment Model gives us a way to test and analyze alignment in our companies. In a word—it is superb! The Alignment Model is a tool that boards, executives, and investors alike can use. This book is required reading for every compensation committee member, CEO, head of HR, and institutional investor in America."
—Alexander L. Cappello, chairman and CEO, Cappello Capital Corp.
"Ferracone provides a set of principles combined with actual accounts of how companies can achieve pay-for-performance alignment on a sustainable basis. Making this happen is critical to building trust and a high-performance culture."
—Richard Floersch, chief HR officer, McDonald's
"Ferracone does an excellent job of describing how executive performance and pay should be aligned. She combines quantitative research with qualitative commentary from those who are on the front lines in determining executive compensation. This combination makes the book eminently readable and a very useful guide."
—Ed Lawler, author, Rewarding Excellence
"By constructing a highly fact-based and thoughtful road map, Ferracone has taken the emotion and fear out of executive compensation decision making. Following the recommendations and analyses contained in this book will enable struggling boards and compensation committees to execute better, and well-performing boards to flourish."
—Anne C. Ruddy, CCP, president, WorldatWork
Yes, and if companies would just take the necessary steps voluntarily, governments won't have to mandate measures to address global climate change.
Robin A. Ferracone now provides firms with the analytical tools they need to compare their practices with those of other firms and to understand how to set "fair pay."
Points such as "ad-hoc decisions are damaging to alignment" along with "absolute performance trumps relative performance" resonate with my philosophies.
Given increased public and government scrutiny of executive pay, corporate boards of directors are under more pressure than ever to implement reasonable, competitive compensation... Read morePublished on January 21, 2011 by Rolf Dobelli
Robin Ferracone hits the right buttons in her new volume when she describes how to develop of an "alignment" report that can be used by boards and shareowners to ensure executive... Read morePublished on September 20, 2010 by James Mcritchie
Executive pay makes great headlines. As a shareholder, and someone who has worked closely with boards of directors and senior executives, Ferracone's great insights around... Read morePublished on July 19, 2010 by Larry Wiesler
The combination of case studies from Tyco to Oracle, and the extensive tracking and research around Total Shareholder Return for the S&P 1500 for 15 years over three year... Read morePublished on July 7, 2010 by Scott Joseph
I have read Robin Ferracone's book twice, and it's pure genius!
Fair Pay, Fair Play: Aligning Executive Performance and Pay