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ISCEBS
18700 W. Bluemound Rd
P.O. Box 209
Brookfield, WI 53008-0209
Phone: (262) 786-8771
Fax: (262) 786-8650
iscebs@iscebs.org
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More
on Benefits Quarterly |
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1st
Quarter 2004
Executive
Summaries
Executive Compensation
Outsourcing
The New Landscape: A Fresh Look at Long-Term Incentives for  Corporate America
by David C. Cates and Ann Monte Costelloe
Today's environment presents us with a torrent of issues surrounding the design and management of long-term and equity-related incentives, both for top executives and employees at large. This article reviews, at a conceptual level, the most important characteristics, advantages and disadvantages of the various principal long-term incentive types as they appear from key perspectives. The authors conclude with predictions about the future of long-term and equity-related incentives.
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The "Perfect Storm" in Compensation: Convergence of Events Leads to a Greater Need to Review Compensation Strategies
by Robert B. Jones, J.D., CPA, CEBS
The recent unprecedented convergence of significant strategic events in the compensation arena has created the need for ongoing and extensive compensation planning. This article reviews the events leading to this point, describes the implications of the results from a recent Aon study with WorldatWork, and suggests what employers can do to successfully navigate the "perfect storm" in compensation.
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Value Rules: Senior Management Incentives in the Post-Option Era
by Richard Ericson
Big changes are in the news and on boardroom agendas. This is a good time for many companies to step back and think fundamentally about how senior management incentives are structured and how these programs should be redesigned for better business results. This article describes the main problems with current incentive structures. It then shows how "value rules" can help employers make better use of incentive plans and create a real stake in business units' long-term results, so that the overall structure of executive incentives consistently encourages value creation for shareholders.
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Executive Pay Trends and Golden Parachute Tax: A Collision on the Horizon
by David G. Johnson
Ironically, many corporations will likely discover that tying equity-based executive compensation more closely to performance will cost millions of dollars when there is a merger or acquisition. The reason: Internal Revenue Code Section 280G, which is designed to discourage "excess" parachute payments, often assesses a significantly higher toll on performance-based compensation than on time-vested equity payments. There is no magic remedy, but advance planning can often help mitigate the impact. This article describes the dilemma and suggests several approaches to the challenge.
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Sales Compensation Governance: The Last Frontier of Corporate Reform
by Peter R. Gundy and Elizabeth C. Gaeta
The area of sales compensation has remained relatively untouched by recent pressures for compensation reform. This article highlights some of the ways that sales organizations stumble in managing their compensation programs, and why it takes more than a simple tactical fix to address these problems effectively. The authors describe a more structured governance framework that not only identifies and resolves key sales compensation issues, but ultimately safeguards the effectiveness and financial integrity of the sales organization itself.
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The HIPAA Privacy Rule and HR/Benefits Outsourcing: Does the Business Associate Label Belong on Your Recordkeeper?
by Denise D. Hilger, CEBS
Employers that sponsor group health plans and serve as the plan administrator of those plans are required by the HIPAA Privacy Rule to execute "business associate" contracts with vendors that provide services on behalf of the plans. The business associate contracts must contain many specific provisions regarding the protection, use and disclosure of health information. This article looks at the implications of imposing business associate contract obligations on an integrated HR and benefits-outsourcing recordkeeper and cautions employers against an overbroad application of the requirements.
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Full text copies of these articles are available through the
INFOSOURCE™ Document Delivery Service. Article reprints are
also available in quantities of 100 or more. For information, call
the Publications Department at (888) 33-IFEBP. You can order your
subscription (reprints and back issues) online. Four issues for
$100 (or $75 for CEBS registrants).
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