Developing High Performing Organisations
20 April 2009
The recent turbulence in the global banking system is having profound repercussions in the 'real' world of industry and commerce. The last few decades have seen the development of close symbiotic relationships between quoted companies and the investment markets, cemented by share-based rewards and corporate governance.
Will the nature of these relationships and the values associated with them have to change in the post-crash world?
Drawing on PARC's recent offerings relating to executive performance and reward, our April meeting staged a PARC debate to examine the field of beliefs, assumptions and practices that comprise executive reward.
This debate was led by Don Young and Tom Gosling and:
Examined the major influences on corporate performance and reward strategies pre-crash; questioned whether there will need to be a significant re-definition of what 'good performance' means; reviewed what changes this may have on reward philosophies and the design of compensation strategies.
A pre-meeting paper examining the relationship between organisation performance and executive reward was used to help frame the debate.
There were some surprising and challenging findings which led practitioners to confront and question some traditional tenets of executive pay. We held a wide and vigorous debate amongst PARC members and a number of outside specialists and interest groups.