Post from: MAPpingCompanySuccess
Last week was about CEOs and I’m still on that topic, because they impact us all, whether we work at their company or not.
Are you familiar with the practice of “peer benchmarking?” You should be, because it is the basis of and responsible for the enormous executive pay inequity, especially for CEOs. The link offers a good explanation of peer benchmarking and a great example of its short and long-term effects using poorly performing Amgen CEO Kevin W. Sharer’s 37% salary increase (75th percentile of the peer group) as an example.
“Basically, you can’t have every CEO paid above average without pay ratcheting upward over time.”
There was a time when companies spent great effort on growing and grooming high achievers and it was a point of pride to have a deep bench of promotable talent, but that was then and this is now.
“60% of the respondents to a poll of 1,380 HR directors of large U.S. companies said their firms have no CEO succession plans in place. …strong evidence supports the notion that a well-groomed insider is a key to sustained company performance.”
But it doesn’t have to be that way; for a look at a CEO who does it right check out this HBR interview with Coke CEO Muhtar Kent, in which he talks about culture, sustainability and succession.
“I prefer to be low-key, to carry my own bag, to try to be inclusive. I use “I” as little as possible and treasure the team in the largest sense—not just of employees but of partners, customers, stakeholders.”
Have a terrific weekend!
Flickr image credit: pedroelcarvalho