Académique Documents
Professionnel Documents
Culture Documents
Compensation
Hot topics
Compensation Management
Benefits
Name
Richard D Fairbank
Terry S Semel
Henry R Silverman
Bruce Karatz
Richard S Fuld Jr
Ray R Irani
Lawrence J Ellison
John W Thompson
Edwin M Crawford
Angelo R Mozilo
John T Chambers
R Chad Dreier
Company
Capital One
Yahoo
Cendant
KB Home
Lehman Bros
Occidental Pet
Oracle
Symantec
Caremark Rx
Countrywide
Cisco Systems
Ryland Group
Pay ($mil)
249.42
230.55
139.96
135.53
122.67
80.73
75.33
71.84
69.66
68.95
62.99
56.47
http://www.forbes.com/2006/04/17/06ceo_ceo-compensation_land.html
Motorola
$104.4 million
Oracle
$84.6 million
Walt Disney
$51.1 million
American Express
$42.8 million
Citigroup
$38.2 million
Hewlett-Packard
$34.0 million
Calpine
$32.7 million
News Corp.
$30.1 million
Honeywell International
$28.7 million
Procter & Gamble
$25.6 million
344 to 1
364 to 1
465 to 1
431 to 1
301 to 1
525 to 1
107 to 1
42 to 1
28 to 1
Since 1990, if the minimum wage rate had risen at the same rate as
CEO pay, minimum wage would now be $23.03 instead of $7.25.
http://money.cnn.com/2005/08/26/news/economy/ceo_pay/
Europe's 25 Highest-Paid
CEOs(2005)
1. Lindsay Owen-Jones, L'Oreal (France), $28.3M
2. John Browne, BP (Britain), $14.0M
3. Arun Sarin, Vodaphone (Britain), $12.2M
4. Henri De Castries, AXA (France), $9.1M
5. Josef Ackermann, Deutsche Bank (Germany), $8.4M
http://www.timeinc.net/fortune/information/presscenter/fortune/press_releases
/20050627H_europe.html
% Change
1988-2005
Australia 292%
Belgium 157
Canada 152
France 197
Germany 187
Italy
232
Japan
8
Netherlands118
New Zealand -Spain
98
Sweden 304
Switzerland172
UK
161
US
169
CEO Pay/Relative to
Worker Pay (2005)*US CEO (2005)
15.6
33%
18
46
23.1
49
22.8
56
20.1
55
25.9
53
10.8
25
17.8
40
24.9
18
17.2
32
19.2
44
19.3
64
31.8
55
39
Women's
Earnings
Men's
Dollar
Percent
Earnings Difference
2005
$31,858
$41,386
$9,528
77.0%
2004* $32,285
$42,160
$9,875
76.6%
2003
$30,724
$40,668
$9,944
75.5%
2002
$30,203
$39,429
$9,226
76.6%
2001
$29,215
$38,275
$9,060
76.3%
2000
$27,355
$37,339
$9,984
73.3%
1999
$27,208
$37,701
$10,493
72.2%
1998
$27,290
$37,296
$10,006
73.2%
1997
$26,720
$36,030
$9,310
74.2%
1996
$25,919
$35,138
$9,219
73.8%
1995
$25,260
$35,365
$10,105
71.4%
1994
$25,558
$35,513
$9,955
72.0%
1993
$25,579
$35,765
$10,186
71.5%
1992
$25,791
$36,436
$10,645
70.8%
Women's
Earnings
Men's
Dollar
Percent
Earnings Difference
1991
$25,457
$36,440
$10,983
69.9%
1990
$25,451
$35,538
$10,087
71.6%
1989
$25,310
$36,855
$11,545
66.0%
1988
$24,774
$37,509
$12,735
66.0%
1987
$24,663
$37,389
$12,726
65.2%
1986
$24,479
$38,088
$13,609
64.3%
1985
$23,978
$37,131
$13,153
64.6%
1984
$23,453
$36,842
$13,389
63.7%
1983
$22,961
$36,106
$13,055
63.6%
1982
$22,367
$36,224
$13,857
61.7%
1981
$21,830
$36,854
$15,024
59.2%
1980
$22,279
$37,033
$14,754
60.2%
1979
$22,446
$37,622
$15,176
59.7%
Women's
Earnings
Men's
Dollar
Percent
Earnings Difference
1978
$22,617
$38,051
$15,005
59.4%
1977
$21,743
$36,901
$15,158
58.9%
1976
$21,738
$36,114
$14,376
60.2%
1975
$21,297
$36,207
$14,910
58.8%
1974
$21,419
$36,456
$15,037
58.8%
1973
$21,397
$37,381
$15,984
56.6%
1972
$21,185
$36,614
$15,429
57.9%
1971
$20,691
$34,771
$14,080
59.5%
1970
$20,567
$34,642
$14,075
59.4%
1969
$20,156
$34,241
$14,085
58.9%
1968
$18,836
$32,389
$13,553
58.2%
1967
$18,241
$31,568
$13,327
57.8%
1966
$17,874
$31,055
$13,181
57.6%
1965
$17,852
$29,791
$11,939
59.9%
http://www.pay-equity.org/info-time.html
$140,000
90,000
88,000
80,000
70,000
20,000
17.000
http://gblakely.com/BADM553/censr-15.pdf
88,000
66,000
50,000
56,000
63,000
15,000
15,000
Compensation Goals
Attracting good employees
Retaining good employees
Motivating employees
Complying with the law
Having a cost effective compensation
system
Internal Equity
Retaining good employees
External Equity
Attracting good employees
Labor Market Model
Market Surveys
http://salarysource.com/
http://swz.salary.com/
Pay strategy/policies
Internal Equity
Retaining good employees
Job Evaluation Techniques
Ranking
Jobs are compared to each other based on their overall
worth to the company. The worth of a job is usually
measured by judgments of skill, effort, responsibility, and
working conditions.
The advantage of the ranking method is that it is simple.
The disadvantages, similar to the ranking method of
performance appraisal, are that the intervals between the
ranks are assumed to be equal, the judgments are
global, and as the number of jobs for evaluation
increases it becomes increasingly difficult. Also, the
evaluators must have knowledge of all jobs.
Classification method
Jobs are classified into a grade/category structure. Each tier of
the structure has a description and associated job titles. For
example, the Westinghouse system had:
Factor Comparison
Select benchmark jobs.
Sets of compensable factors are identified as
determining the worth of jobs. The number of factors is
usually four or five and typically relate to skill,
responsibility, effort and working conditions.
Jobs are then ranked on each factor.
Wages are then allocated to the factors. The
organizations other jobs are then compared to the
benchmark jobs and rates of pay for each of the other
jobs.
Factor comparison has the advantage that the value of
the job is expressed in monetary terms, and the method
is applicable to a wide range of jobs.
The methods disadvantages are that the pay points for
each factor is based on subjective judgments.
Point Method
The point method is an extension of the factor
comparison method. Usually between eight
and fourteen compensable factors (typically
related to skill, effort, responsibility, and working
conditions) are identified as determining the
worth of jobs.
Factors are divided into degrees
Points are assigned the degrees
Benchmark jobs are compared to market rates
_____
_____
Benefits
_____
_____
Company
_____
_____
Co-workers
_____
_____
Hours
_____
_____
Pay
_____
_____
Job Security
_____
_____
Supervisor
Type of Work
Working Conditions
_____
_____
_____
_____
_____
_____
The following median rankings are based on the responses of 39,788 job applicants
(Minneapolis Gas Company).
MEN
WOMEN
Self
Others
Self
Others
Advancement
3.3
3.8
5.3
4.3
Benefits
6.8
5.2
8.0
5.9
4.5
6.8
4.6
Company
Co-workers
6.0
7.7
5.2
7.3
Hours
7.6
5.4
6.9
5.0
Pay
5.6
2.1
6.0
2.1
Job Security
2.5
3.6
4.9
5.4
6.3
7.4
5.3
4.9
1.5
3.5
7.9
6.9
6.5
Supervisor
Type of Work
Working Conditions
3.3
7.1
7.0
6.8
(From Lawrence Lindahl, " What Makes a Good Job?", Personnel, (January 1949)
10
8
6
1
2
Workers
4
3
5
1
8
5
9
9
10
7
3
6
6.2
6.0
5.9
5.7
5.5
5.3
5.2
5.0
4.6
3.9
3.7
3.3
1978
Type of work
2.2
1.5
Advancement
4.6
3.6
Co-workers
5.1
5.2
Company
5.7
4.4
Security
5.8
5.5
Location
6.2
Supervisor
6.3
5.5
Pay
6.3
5.2
Working conditions
7.2
7.2
Benefits
7.4
7.9
Hours
9.3
8.0
Benefits
The Cost of Benefits
Mandatory
Workers Compensation
https://www.brickstreet.com/default.aspx
Unemployment Insurance
Family Medical Leave
Social Security http://www.ssa.gov/
Retirement income
Disability income
Medicare
Survivor benefits
2006 rates
Social security 6.2% on first $94,200
Medicare 1.45% unlimited
Benefits
Non-mandatory
Insurance
Health
Cost escalation
COBRA
HIPAA
Types of health insurance
Traditional indemnity plans
HMO
PPO
Retirement
ERISA (1974)
Vesting
Full vesting after 5 years
20% per year after 3 years
Fiduciary standards
Pension Benefit Guarantee Corporation
Defined benefit
Defined contribution
401(k), 403(b)
http://invest-faq.com/articles/ret-plan-401k.html
IRA
SEP
Keogh
http://www.dallasfed.org/ca/wealth/3.html
http://www.dol.gov/ebsa/faqs/faq_compliance_pension.html
Benefits continued
Paid time off
Employee services