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Facebook might be the most high-profile example of the tricky nature of setting compensation for workers performing similar jobs in different locations.

;A construction component supplier started with 11 targets and will reduce this to seven because target-setting at the board level was too demanding.

Such a simple — but high risk/high reward — pay structure achieves the very important goal of aligning executive and shareholder interests, while also reducing the annual pay negotiation process over annual grant values, performance metrics, goal setting, etc.

Seven primary factors influence CCOS: Base pay levels;Target Total Compensation (TTC) levels;Quota setting and allocation practices;Quota attainment levels;Shape of the pay curve in the sales compensation plan;Sales crediting rules;Salesforce sizing and deployment (reps and overlay positions); Benchmarking CCOS If you guessed that the benchmark for CCOS is 7.9%, you’re right.

As employers apply the new rule, they must consider the six factors set forth by the Department of Labor (DOL).

;Growth opportunities must fit a hybrid/remote work setting.

Historically, proxy advisor firms ISS and Glass Lewis have set a clear expectation that at least 50% of executive LTI awards be tied to performance-based metrics.

Fewer than a third of firms structure retention periods to last longer than two years, with the median now set between 13 months and 18 months.

And, of course, organizations also should have a plan for setting interim compensation plans .; By addressing risk mitigation at a more strategic and philosophical level, organizations will be better prepared to find and retain these key contributors while ensuring business continuity in the event of the unexpected.

“The skill set has evolved with the increasing importance of technology and data-driven decision-making