LOS ANGELES--()--Today’s organizations are under intense pressure and unprecedented scrutiny to redefine their standards for accountability when determining executive compensation. Research shows that investors are most concerned about the lack of alignment between their interests and those of executives when it comes to pay.
“Fair Pay, Fair Play: Aligning Executive Performance and Pay”
In her new book, “Fair Pay, Fair Play: Aligning Executive Performance and Pay” (Jossey-Bass, April 2010), author Robin A. Ferracone addresses a growing need among boards, senior executives, HR, compensation professionals and investors for a new way to think about executive compensation. She suggests a model for establishing common standards of fairness and propriety, and shows how our collective actions can help develop a more efficient market for executive talent.
“'Fair Pay, Fair Play’ discusses new and practical ways of determining whether pay and performance are sufficiently aligned, and if not, what to do about it,” said Ferracone, Executive Chair of the independent executive compensation consulting firm Farient Advisors. “It provides insights from those on the ‘front lines’ who have faced issues of misaligned pay – people like compensation committee members, board members, CEOs, CHROs, investors and shareholder advisors.”
Ferracone provides a clear examination of executive pay and offers guidance on how to determine fair pay packages, pay actions and program designs. Drawing on a database of nearly 50,000 data points or “cases,” defined as named executive officers in the S&P 1500 over the last 15 years, she shows how pay has historically moved with company size, industry and performance. Using this data, Ferracone offers the ability to analytically determine appropriate compensation relative to the performance delivered, controlling for company size and industry.
About the Author
Robin A. Ferracone is the founder and Executive Chair of Farient Advisors. With more than 30 years of consulting experience, she has advised clients in the areas of business and talent strategies, executive compensation, value management and performance measurement. Her work has focused on providing high-impact decision-making support and organizational solutions based on strategic and market insights. For more information, visit http://www.farient.com or http://www.fairpayfairplay.com/
Fair Pay, Fair Play: Aligning Executive Performance and Pay by Robin A. Ferracone; Jossey-Bass; April 2010; Hardcover: $34.95; 288 pages; ISBN 978-0-470-57105-7

