Roy Harris, CFO Magazine
February 1, 2007
The concept of rewards for a job well done and nothing for a job poorly done is important. A key concept in supporting a meritocracy is that of base compensation/rewards being a "full glass" for employees. This must be communicated and acted upon in every aspect of the company including compensation and promotions. If this is done well, then the bonuses, equity awards and other incentives will be seen as just that. People will look forward to winning such rewards, rather than expect an award for just playing the game. This culture starts at the top. If employees see Top execs and management being paid and rewarded according to the jobs accomplished, rather than simply for the title held, they will buy-in to the overall message. Bifurcating pay from accountability, anywhere in an organization, tears apart a meritocracy and often leaves you with only those for whom winning is not a goal.
Posted by Dan Walter | Feb 8, 2007 3:34 PM ET
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