EXECUTIVE ACCOUNTABILITY AND EXCESSIVE COMPENSATION

A New Test for Director Liability From The Corporate Governance Advisor - Nov/2004

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Most boards are still asking the wrong question about executive compensation. They are asking "How Much" rather than the more appropriate "For What". Thus the basis for determining equitable versus excessive executive pay can't be determined unless the executive role and its level of accountability have been effectively and clearly defined.

This article addresses why the lack of executive accountability, flawed executive compensation practices and Levels of Work a solution to integrating organization design and executive compensation. It highlights the use of the Level of Work and the "felt fair pay" multiplier to properly job match executive roles and calibrate executive compensation when developing peer groups. It also demonstrates how Pay for Performance in many companies is broken given some 59 % of listed companies failed to create a positive profit greater than their cost of capital over 5 years ending in 2002.

Major organizations and consulting firms that provide Requisite Organization-based services

A global association of academics, managers, and consultants that focuses on spreading RO implementation practices and encouraging their use
Dr. Gerry Kraines, the firms principal, combines Harry Levinson's leadership frameworks with Elliott Jaques's Requisite Organization. He worked closely with Jaques over many years, has trained more managers in these methods than anyone else in the field, and has developed a comprehensive RO-based software for client firms.
Ron Capelle is unique in his multiple professional certifications, his implementation of RO concepts through well designed organization development methods, and his research documenting the effectiveness of his firm's interventions
Former RO-experienced CEO, Ron Harding, provides coaching to CEOs of start-ups and small and medium-size companies that are exploring their own use of RO concepts.  His role is limited, temporary and coordinated with the RO-based consultant working with the organization
Founded by Gillian Stamp, one of Jaques's colleagues at Brunel, the firm modified Jaques;s work-levels, developed the Career Path Appreciation method, and has grown to several hundred certified assessors in aligned consulting firms world-wide recently expanding to include organization design
Requisite Organization International Institute distributes Elliott Jaques's books, papers, and videos and provides RO-based training to client organizations