Searching Pondering Equity-Based Long-Term Incentive Plans on page 18

Greater Flexibility Could Spur Participation Rates The final regulation takes a “principles-based approach,” which creates some room for the plan sponsor to “do what’s right” for its participants when making retirement plan investment choices, according to Steven Grieb, senior compliance counsel with Gallagher.

While consistency in strategy is undoubtedly crucial for long-term success, the ability to adapt and provide flexibility in compensation plans is emerging as a powerful catalyst for boosting motivation and driving results.

Here Are 5 Suggestions , Workspan Daily article;Pondering a Pay Plan Shift from Commission to Quota?

(Editor’s note: WorldatWork recently switched its usage of the terms “diversity, equity and inclusion” and “diversity, equity, inclusion and belonging” to “equitable and diverse workplaces.”

While there are no legal obligations to make the plan design available to sales employees, she said, “there can be advantages to disclosing the expectations around each incentive outlined in the plan.”

;Full time: Annual compensation with base salary, cash incentive pay and equity pay (either designed like or unlike those for the CEO, depending on role definition and alignment objectives).; ;Reduced time: Lower annual compensation with base salary and sometimes cash incentive pay and/or equity pay, based on desired structure.; Retired No continuing role (true retirement) ;No action, no additional compensation.; ;Plan documents define what is a qualifying retirement and specify treatment of outstanding equity.; ;Unpaid/unvested awards are earned/vested as per retirement provisions of the corporate plan documents.; ;Any new awards in the new role are tailored to the responsibilities/duties and expected tenure in strategic advisor role.

The study examines issues such as the top factors organizations use when determining rewards, the leading employee concerns related to internal and external equity, how frequently employees complain about their base pay, how men and women tend to view fairness according to different criteria and more.

“At best, base salary levels should be compared against a broad-based peer group but should only be used as a general guide for short- and long-term incentive opportunity amounts.”

Base your base salary increase budgets on the cost of labor in relative markets instead of cost of living and inflation.

Most cited that programs tied to job leveling included base pay ranges, annual incentive eligibility and opportunities, long-term incentive eligibility and opportunities, and criteria/guidelines to enter a job level.