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Sun Apr 22, 2012, 06:26 PM

Next week, Ima march in to my boss and say...

"Look, I know you hired me on the representation that I have the skills to do this job competently, and that I have the integrity and character to apply those skills diligently and conscientiously. And I know we discussed at my interview that the reason I wanted this job is because I have a passion for this kind of work, and that I'm eager to apply myself to help this company exceed its plans, goals, and expectations...

...but yer gonna have to wash that s*** out, because baby, there ain't NOTHIN' I can do for ya unless you dangle "incentives" worth seven or eight times my base salary in front of me, and make sure that I end up taking home at least five times that base salary amount in cash, assets, and benefits. Nothin'. Sorry.

I mean, really, how can you POSSIBLY expect me to perform up to and/or above the standards of everyone else in this business, without that kind of compensation plan?"

And I fully expect my boss to give me the stink eye and say, "It's Monday, Bright, and I'm not in the mood for jokes. Now go straighten out that database issue and get the company Facebook page switched over to the new whatchamacallit, or there'll be no pizza for you at the monthly staff birthday party."

Excerpts from Manulife Financial Shareholder Proxy Circular
For the year 2011

Donald Guloien, President & CEO
Base salary: $986,550; Share-Based Awards: $2,711,280; Option-Based Awards: $2,711,280; Non-Equity Incentive Plan Compensation: $1,584,435; Pension Value: $568,300; Other Compensation: $103,307
TOTAL COMPENSATION: $8,665,152

Michael W. Bell, Senior Executive Vice President & CFO
Base salary: $690,585; Share-Based Awards: $1,478,880; Option-Based Awards: $1,478,880; Non-Equity Incentive Plan Compensation: $499,097; Pension Value: $112,700; Other Compensation: $835,696
TOTAL COMPENSATION: $5,095,838

Paul Rooney, Senior Executive Vice President, Canadian Division
Base salary: $625,000; Share-Based Awards: $900,000; Option-Based Awards: $900,000; Non-Equity Incentive Plan Compensation: $534,240; Pension Value: $354,200; Other Compensation: $58,307
TOTAL COMPENSATION: $3,371,747

Warren Thomson, Senior Executive Vice President and Chief Investment Officer
Base salary: $641,257; Share-Based Awards: $887,328; Option-Based Awards: $887,328; Non-Equity Incentive Plan Compensation: $549,271; Pension Value: $103,000; Other Compensation: $66,112
TOTAL COMPENSATION: $3,134,296

James Boyle, Senior Executive Vice President, U.S. Division
Base salary: $641,290; Share-Based Awards: $887,328; Option-Based Awards: $887,328; Non-Equity Incentive Plan Compensation: $480,612; Pension Value: $96,200; Other Compensation: $0
TOTAL COMPENSATION: $2,992,758

(And that's just what they're publicly willing to allow the accounting to show...)


So, tell me, fellow DUers: How do you think YOUR boss would respond to being told that s/he can't possibly get top-level performance from you unless they "incentivize" your compensation to five or six times your base salary?

Or, conversely, if you are yourself a boss, tell me when you're going to implement such a compensation plan, because obviously, your employees can't possibly do their jobs up to industry standards without it?

curiously,
Bright





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Arrow 14 replies Author Time Post
Reply Next week, Ima march in to my boss and say... (Original post)
TygrBright Apr 2012 OP
varelse Apr 2012 #1
Cleita Apr 2012 #2
TygrBright Apr 2012 #3
bahrbearian Apr 2012 #4
n2doc Apr 2012 #5
Bozita Apr 2012 #6
former9thward Apr 2012 #7
Tumbulu Apr 2012 #8
former9thward Apr 2012 #9
catbyte Apr 2012 #10
Indydem Apr 2012 #11
Fumesucker Apr 2012 #13
Uben Apr 2012 #12
blueamy66 Apr 2012 #14

Response to TygrBright (Original post)

Sun Apr 22, 2012, 06:29 PM

1. I know what my boss would say

"We are an at-will employer and you are free to seek better compensation elsewhere, at any time"

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Response to TygrBright (Original post)

Sun Apr 22, 2012, 06:29 PM

2. Meet you in the unemployment line.

I just got replaced by another worker willing to work for $2 less an hour than me. It's a bad job market out there. I can't imagine even demanding to be "incentivized".

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Response to TygrBright (Original post)

Sun Apr 22, 2012, 07:45 PM

3. Oh, come on! NO one thinks their boss would be all...

"...oh, damn, of COURSE we have to have a compensation plan like that! How could we POSSIBLY compete for the best employees without it?"

No one....?

Anyone...?

bewilderedly,
Bright

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Response to TygrBright (Original post)

Sun Apr 22, 2012, 08:23 PM

4. They sure don't want to motivate you.

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Response to TygrBright (Original post)

Sun Apr 22, 2012, 08:45 PM

5. That's not the way it works

The real way it works is "Hey- buddy, I'm on the board of so-and-so and on several compensation boards at other companies. And you are aware that several of those folks are on YOUR compensation board. Now, scratch my back and I'll make sure I put in a good word for you with them...."


Corruption, plain and simple. Your personal productivity means little. Your value to the company means little. Your ability to get your boss a bigger bonus is what really matters.

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Response to n2doc (Reply #5)

Sun Apr 22, 2012, 08:58 PM

6. Truth!

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Response to TygrBright (Original post)

Sun Apr 22, 2012, 09:19 PM

7. This is the result of IRS deductibility.

In 1993 Congress changed the rule on what corporations can deduct. They could only deduct up to one million $ in non-performance salary. Anything more than that had to be performance related. So corporations shifted to performance based incentives to get around the regulation. The total amount of compensation did not really change much -- just how it is doled out.

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Response to former9thward (Reply #7)

Mon Apr 23, 2012, 12:57 PM

8. Thanks for the good info

I understand it better now.

But what I do not understand is why these executives think that they deserve to be paid so much more than the general workers. This is the real issue, I think.

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Response to Tumbulu (Reply #8)

Mon Apr 23, 2012, 01:15 PM

9. It certainly is the real issue.

U.S. companies are way out of line in executive compensation compared to similar foreign corporations. There are not many good answers to the problem. Most that have been suggested would not make it past the Constitution.

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Response to TygrBright (Original post)

Mon Apr 23, 2012, 02:36 PM

10. I work for a public university--I don't think the Board of Directors

would go for it, LOL. I know, I'm a sap, a drain, a moocher, a waste of taxpayer dollars.

Diane
Anishinaabe in MI & mom to Leo, Sophie, Taz & Nigel, members of Dogs Against Romney, Cat Division
"We ride inside--HISS!

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Response to TygrBright (Original post)

Mon Apr 23, 2012, 05:24 PM

11. Perhaps some math will help.

 

These are officers of the corporation, responsible for the operation and profit of a major corporation.

They have many people who work for them; people they are responsible for, and who depend on them to make good decisions to assure that the company remains profitable and continue to pay their salaries.

Manulife employs 26,000 people.

If you combine all of the salaries of all those executives and divvy that out over 26,000 employees, it's $895 per year, or $.45 per hour.

If you paid the entire management NOTHING and spread the wealth, the employees of Manulife (who are probably paid very well anyway) couldn't afford to buy a new big-screen TV.

Executive compensation is only outrageous if you choose a ridiculous metric to analyze it by.

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Response to Indydem (Reply #11)

Tue Apr 24, 2012, 07:57 AM

13. But they are rarely held responsible...

Profits go up, executive gets a "performance bonus" for a job well done.

Company approaches bankruptcy, executive gets a "retention bonus" so they won't leave for greener pastures.

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Response to TygrBright (Original post)

Tue Apr 24, 2012, 07:48 AM

12. I proposed the same thing to my boss......

...she said, "Shut up and go mow the lawn or I aint cookin tonight!"

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Response to TygrBright (Original post)

Tue Apr 24, 2012, 08:24 AM

14. I just quit

 

fuck it....ain't worth it anymore

My company had an Applications' Engineer who played video games for 7 of his 8 hours at work. How does Mgt not know that? Really?

I'd rather live on my 401k money for a while, get a part time job and enjoy life.....

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