Federal Government agencies are moving to better align pay with performance & create organizational cultures that emphasize performance rather than tenure. However, agencies must invest time, money, & effort in the design of their pay for performance compensation systems in order to succeed. To help agencies understand the critical prerequisites to success & key decision points, a review was conducted of professional & academic writings on the topic of pay for performance. This user-friendly guide summarizes the research findings. Contents: a summary of pay for performance; benefits & risks associated with pay for performance; pay for performance decision points; conclusions & recommendations; & bibliography. Illustrations.

The company is under-performing, its share price is trailing, and the CEO gets...a multi-million-dollar raise. This story is familiar, for good reason: as this book clearly demonstrates, structural flaws in corporate governance have produced widespread distortions in executive pay. Pay without Performance presents a disconcerting portrait of managers' influence over their own pay--and of a governance system that must fundamentally change if firms are to be managed in the interest of shareholders. Lucian Bebchuk and Jesse Fried demonstrate that corporate boards have persistently failed to negotiate at arm's length with the executives they are meant to oversee. They give a richly detailed account of how pay practices--from option plans to retirement benefits--have decoupled compensation from performance and have camouflaged both the amount and performance-insensitivity of pay. Executives' unwonted influence over their compensation has hurt shareholders by increasing pay levels and, even more importantly, by leading to practices that dilute and distort managers' incentives. This book identifies basic problems with our current reliance on boards as guardians of shareholder interests. And the solution, the authors argue, is not merely to make these boards more independent of executives as recent reforms attempt to do. Rather, boards should also be made more dependent on shareholders by eliminating the arrangements that entrench directors and insulate them from their shareholders. A powerful critique of executive compensation and corporate governance, Pay without Performance points the way to restoring corporate integrity and improving corporate performance.

Building on evergreen principles, concepts, and strategies of performance and rewards management, the second edition of Rewarding Performance is a clear guide to how strategies must be adjusted to align with new realities, and programs revised to ensure their effectiveness. Appendices dealing with the important and increased reliance on evidence-based management have been added, to provide insights into how evidence can be applied in performance and rewards management. Another major development addressed in the second edition is the rise of the "gig economy," which has challenged organizations to brand themselves as employers of choice. This new edition answers the challenge by considering the impact of this trend on performance and rewards management throughout the book, and expanding the content related to managing non-employees. The second edition also includes a new appendix, providing a fundamental grounding in the use of statistics relevant to performance and rewards management. A chapter on contractors has been added and material on cognitive bias explores why managing people must be understood as different from managing quantitative measures. Updated figures and PowerPoint presentations make the new edition of Rewarding Performance an essential resource for instructors and students of human resource management.