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An example analysis might compare a company’s relative three-year CEO CAP and three-year total shareholder return (TSR) relative to a compensation peer group.

“The drugs make people healthier and likely improve productivity, but even with all of these medical benefits, they will not lower total medical expenditures,” he said.

For WorldatWork Members ;Take These Three Steps to Mitigate Employee Distrust , Workspan Daily Plus+ article; ;The Trust Equation: Building Trust Through Total Rewards , Workspan Daily Plus+ article; ;Aligning Incentives, Performance Metrics and Strategic Objectives , Workspan Magazine article; ;Freedom and Responsibility , Workspan Magazine article; A majority of the largest U.S. companies utilize workplace surveillance tools to track employees, but for some workers, those tactics appear to have gone too far.

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“Leading employers need to be thoughtful, strategic and transparent about the overall total rewards offering for all of their various employee groups — potentially including elements beyond the hourly rate, to include things like benefit eligibility and other types of coverage,” he said Reviewing compensation structures to ensure that ranges are compliant is the bare minimum, Frost said, and employers need to think strategically and holistically to ensure that their total rewards programs support their workforce strategy and, by extension, their business strategy.

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A 2x leverage means the total upside incentive amount is twice the target incentive.