Bonus controversy could change compensation

Increased scrutiny of executive pay could result in smaller bonuses tied strictly to performance
By Angela Scappatura
|Canadian HR Reporter|Last Updated: 04/20/2009

Although executives can still expect some big bonuses in the future, company boards are moving towards a more conservative way of determining compensation, according to a senior executive compensation consultant at global consulting firm Watson Wyatt.

“There is probably going to be a change in the way executives are going to be paid,” said Robert Levasseur, who is based in Toronto.

“There will be more concern in terms of looking at mitigating risk… because oftentimes the employees are (in) the position where they recorded vast amounts of compensation for decisions they’ve made, not knowing if the decisions are beneficial to the organization in the long term.”