Pay for performance better for executives, companies

By David Brown
|Canadian HR Reporter|Last Updated: 04/10/2003

Pay for performance puts more cash in executives’ pockets while improving a firm’s balance sheets, a new study shows.

Organizations that make some part of compensation dependent on individual performance, perform better than others, and increase the pool of money available for compensation — this means employees get paid more, too, explained Eric Cousineau, an HR consultant with Johnston Smith International and author of the study,

The Relationship between Executive Pay & Corporate Performance