Pay for Performance traditionally means that CEO compensation is tied to a company’s fortunes, reports the Swiss financial daily Finanz und Wirtschaft. But a growing number of companies are now using non-financial parameters like employee/customer satisfaction and sustainability targets to benchmark corporate success, notes Egon Zehnder consultant Philippe Hertig. What do firms hope to achieve with Pay for Performance? According to Hertig, the twin goals are motivating executives by rewarding both achievement and loyalty, with variable compensation often taking the form of blocked shares.
Full story: “Wann kann man von Pay for Performance sprechen” (“What Does Pay for Performance Really Mean?”) in Finanz und Wirtschaft (31 May 2017).