tag:blogger.com,1999:blog-7700507399260864429.post7877386226663187894..comments2023-09-05T03:27:44.557-05:00Comments on Innovation and Advantage: Innovating Executive PayProfessor Robbinshttp://www.blogger.com/profile/05888371487484973438noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7700507399260864429.post-15810111283275638682009-10-29T14:34:39.462-05:002009-10-29T14:34:39.462-05:00I think this may discourage top BMW executives and...I think this may discourage top BMW executives and managers from making big bets on risky “blue ocean” innovations. Because a considerable portion of their own pay is at risk, these decision makers may now prefer to focus on safe, small incremental innovations that guarantee success. I think the auto companies most in financial risk, such as Ford, are most likely to follow a similar sort pay structure. Their executives are now more personally accountable for poor performance and “innovation flops,” and I think their compensation will be measured accordingly.KBarbierihttps://www.blogger.com/profile/16504826563290552971noreply@blogger.comtag:blogger.com,1999:blog-7700507399260864429.post-79829404029702864982009-10-29T14:31:31.251-05:002009-10-29T14:31:31.251-05:00I like the idea of linking executive's pay to ...I like the idea of linking executive's pay to the performance of workers as it encourages a more "hands on," involved approach to leadership. While I'm not sure of the details of BMW's executive compensation plan, I believe it would work best if clear, defined metrics were involved - also, do you know what portion of an exec's salary is this talking about, do they have it defined by percentages? Or is it just talking about bonuses? <br /><br />I definitely think this type of pay structure can be adopted by organizations across many different industries, to achieve major strategic goals that are considered most important. For example, I remember reading about a British grocery chain called Tesco which has launched enterprise-wide "green" initiatives to reduce the "carbon footprint" of its business. To ensure that employees at all levels are committed to being "green", and to make sure that its leadership walks the talk, Tesco now determines senior-management bonuses partly on meeting energy- and waste-reduction targets.<br /><br />Another organization where I can see this type of compensation structure work really well is Disney. Especially in their Parks and Resorts business unit, impeccable customer service is considered to be a high-priority goal. So, to ensure that this dedication to service was being displayed from the very top of the organization to the very bottom, Disney could design a compensation plan that links a portion of park executives' salaries directly to the level of service provided in the parks, based on customer feedback (not sure if they currently do this or not).Nida Sohailhttps://www.blogger.com/profile/13968985714230197851noreply@blogger.com