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CHAPTER 12 PAY FOR PERFORMANCE AND FINANCIAL INCENTIVES 419<br />

39. Nina McIntyre, Using EIM Technology<br />

to Successfully Motivate Employees,<br />

Compensation & Benefits Review, July/<br />

August 2001, pp. 57 60.<br />

40. Frank Giancola, Examining the Job Itself<br />

as a Source of Employee Motivation,<br />

Compensation & Benefits Review 43, no. 1<br />

(2011), pp. 23 29.<br />

41. www.deloitte.com/assets/Dcom-United-<br />

States/Local%20Assets/Documents/us_<br />

consulting_2010StrategicSalesCompensa<br />

tionSurvey_072910.pdf, accessed June 1,<br />

2011.<br />

42. Ibid.<br />

43. Deloitte Varicent, 2010 Strategic Sales<br />

Compensation Survey, p. 6, at http://<br />

www.deloitte.com/assets/Dcom-United-<br />

States/Local%20Assets/Documents/<br />

us_consulting_2010StrategicSalesCompensationSurvey_072910.pdf,<br />

accessed<br />

August 29, 2011.<br />

44. Straight salary by itself is not, of course,<br />

an incentive compensation plan as we use<br />

the term in this chapter.<br />

45. Donna Harris, Dealers Rethink How<br />

They Pay Salespeople, Automotive News,<br />

June 14, 2010, www.autonews.com/apps/<br />

pbcs.dll/article?AID=/20100614/RETAIL<br />

07/306149932m, accessed June 1, 2011.<br />

46. Sonjun Luo, Does Your Sales Incentive<br />

Plan Pay for Performance? Compensation<br />

& Benefits Review, January/<br />

February 2003, pp. 18 24.<br />

47. Scott Ladd, May the Sales Force Be with<br />

You, HR Magazine, September 2010,<br />

p. 105.<br />

48. Luo, Does Your Sales Incentive Plan Pay<br />

for Performance, pp. 331 345. See also<br />

James M. Pappas and Karen E. Flaherty,<br />

The Moderating Role of Individual-<br />

Difference Variables in Compensation<br />

Research, Journal of Managerial Psychology<br />

21, no. 1 (January 2006), pp. 19 35;<br />

and T. B. Lopez, C. D. Hopkins, and M. A.<br />

Raymond, Reward Preferences of Salespeople:<br />

How Do Commissions Rate?<br />

Journal of Personal Selling & Sales Management<br />

26, no. 4 (Fall 2006), p. 381(10).<br />

49. Bill O Connell, Dead Solid Perfect:<br />

Achieving Sales Compensation Alignment,<br />

Compensation & Benefits Review,<br />

March/April 1996, pp. 46 47. See also<br />

C. Albrech, Moving to a Global Sales<br />

Incentive Compensation Plan, Compensation<br />

& Benefits Review 41, no. 4 (July/<br />

August 2009), p. 52.<br />

50. See, for example, Pankaj Madhani,<br />

Realigning Fixed and Variable Pay in<br />

Sales Organizations: An Organizational<br />

Lifestyle Approach, Compensation &<br />

Benefits Review 42, no. 6, pp. 488 498.<br />

51. Leslie Stretch, From Strategy to Profitability:<br />

How Sales Compensation Management<br />

Drives Business Performance,<br />

Compensation & Benefits Review, May/<br />

June 2008, pp. 32 37.<br />

52. S. Scott Sands, Ineffective Quotas: The<br />

Hidden Threat to Sales Compensation<br />

Plans, Compensation & Benefits Review<br />

(March/April 2000), pp. 35 42. See also<br />

Driving Profitable Sales Growth: 2006/<br />

2007 Report on Sales Effectiveness, www.<br />

watsonwyatt.com/research/resrender.asp?<br />

id=2006-US-0060&page=1, accessed<br />

May 20, 2007.<br />

53. Peter Gundy, Sales Compensation Programs:<br />

Built to Last, Compensation &<br />

Benefits Review (September/October 2002),<br />

pp. 21 28. See also T. B. Lopez, C. D.<br />

Hopkins, and M. A. Raymond, Reward<br />

Preferences of Salespeople: How Do Commissions<br />

Rate? Journal of Personal Selling<br />

& Sales Management 26, no. 4 (Fall 2006),<br />

p. 381(10).<br />

54. Driving Profitable Sales Growth: 2006/<br />

2007 Report on Sales Effectiveness, www.<br />

watsonwyatt.com/research/resrender.<br />

asp?id=2006-US-0060&page=1, accessed<br />

May 20, 2007.<br />

55. Varicent, 2010 Strategic Sales.<br />

56. Bob Conlin, Best Practices for Designing<br />

New Sales Compensation Plans, Compensation<br />

& Benefits Review, March/April<br />

2008, p. 51.<br />

57. Ibid., p. 53.<br />

58. www.vuesoftware.com/Product/Compensation_Management.aspx,<br />

accessed June 1,<br />

2011.<br />

59. Ibid.<br />

60. Mark Meltzer and Howard Goldsmith,<br />

Executive Compensation for Growth Companies,<br />

Compensation & Benefits Review,<br />

November/December 1997, pp. 41 50; and<br />

Barbara Kiviat, Everyone into the Bonus<br />

Pool, Time 162, no. 24 (December 15, 2003),<br />

p. A5.<br />

61. www.mercer.com/pressrelease/details.<br />

jhtml/dynamic/idContent/1263210,<br />

accessed January 2, 2007.<br />

62. Meltzer and Goldsmith, Executive Compensation<br />

for Growth Companies,<br />

pp. 41 50. See also Patricia Zingheim and<br />

Jay Schuster, Designing Pay and Rewards<br />

in Professional Companies, Compensation<br />

& Benefits Review, January/February<br />

2007, pp. 55 62; and Ronald Bottano<br />

and Russell Miller, Making Executive<br />

Compensation Count: Tapping into the<br />

New Long-Term Incentive Portfolio,<br />

Compensation & Benefits Review, July/<br />

August 2007, pp. 43 47.<br />

63. George Yancey, Aligning the CEO s<br />

Incentive Plan with Criteria that Drive<br />

Organizational Performance, Compensation<br />

& Benefits Review 42, no. 3 (2010),<br />

pp. 190 196.<br />

64. See The Impact of Sarbanes-Oxley on<br />

Executive Compensation, www.thelenreid.<br />

com, accessed December 11, 2003. See<br />

also Brent Longnecker and James<br />

Krueger, The Next Wave of Compensation<br />

Disclosure, Compensation &<br />

Benefits Review, January/February 2007,<br />

pp. 50 54.<br />

65. James Reda, Executive Compensation:<br />

Balancing Risk, Performance and Pay,<br />

Financial Executive 25, no. 9 (November<br />

2009), pp. 46 50.<br />

66. Meltzer and Goldsmith, Executive Compensation<br />

for Growth Companies,<br />

pp. 44 45; Max Smith and Ben Stradley,<br />

New Research Tracks the Evolution<br />

of Annual Incentive Plans, Executive<br />

Compensation, Towers Watson, 2010,<br />

Towerswatson.com, accessed August 28,<br />

2011.<br />

67. Max Smith and Ben Stradley, New<br />

Research Tracks the Evolution of Annual<br />

Incentive Plans, Executive Compensation,<br />

Towers Watson, 2010, Towerswatson.com,<br />

accessed August 28, 2011.<br />

68. Ibid.<br />

69. Ibid.<br />

70. Ibid.<br />

71. Meltzer and Goldsmith, Executive Compensation<br />

for Growth Companies, p. 44.<br />

Fay Hansen, Salary and Wage Trends,<br />

Compensation & Benefits Review, March/<br />

April 2004, pp. 9 10.<br />

72. Bruce Ellig, Executive Pay Financial<br />

Measurements, Compensation & Benefits<br />

Review, September/October 2008,<br />

pp. 42 49.<br />

73. Dionne Searcey, Transocean Executives<br />

to Donate Bonuses, The Wall Street<br />

Journal, April 6, 2011, p. B1.<br />

74. Benjamin Dunford et al., Underwater<br />

Stock Options and Voluntary Executive<br />

Turnover: A Multidisciplinary Perspective<br />

Integrating Behavioral and Economic<br />

Theories, Personnel Psychology 61 (2008),<br />

pp. 687 726.<br />

75. Phred Dvorak, Slump Yields Employee<br />

Rewards, The Wall Street Journal,October 10,<br />

2008, p. B2; Don Clark and Jerry DiColo,<br />

Intel to Let Workers Exchange Options,<br />

The Wall Street Journal, March 24, 2009,<br />

p. B3.<br />

76. Wm. Gerard Sanders and Donald<br />

Hambrick, Swinging for the Fences: The<br />

Effects of CEO Stock Options on Company<br />

Risk-Taking and Performance, Academy<br />

of Management Journal 50, no. 5<br />

(2007), pp. 1055 1078.<br />

77. Study Finds That Directly Owning Stock<br />

Shares Leads to Better Results, Compensation<br />

& Benefits Review, March/April<br />

2001, p. 7. See also Ira Kay, Whither the<br />

Stock Option? While Stock Options Lose<br />

More Luster as Executive Motivators,<br />

Compensation Committees Face Challenges,<br />

Including Selecting Other Forms of<br />

Stock Incentives, Financial Executive 20,<br />

no. 2 (March April 2004), p. 46(3); and<br />

Lucian A. Bebchuk and Jesse M. Fried, Pay<br />

Without Performance: Overview of the<br />

Issues, Academy of Management Perspective<br />

20, no. 1 (February 2006), p. 5(20).<br />

78. www.mercer.com/pressrelease/details.<br />

jhtml/dynamic/idContent/1263210,<br />

accessed January 2, 2007.<br />

79. www.nceo.org/main/article.php/id/43/,<br />

accessed June 1, 2011.<br />

80. Louis Lavelle, How to Halt the Options<br />

Express, BusinessWeek, September 9, 2002.<br />

81. www.nceo.org/main/article.php/id/43/,<br />

accessed June 1, 2011.

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