Percentage of senior management/executive salary that is performance-related pay

This measure calculates the percentage of senior management/executive (i.e. the highest-ranking officers and managers below executives) salary that is performance-related pay. It is part of a set of Process Efficiency measures that help companies optimize their "develop and manage reward, recognition, and motivation programs" process by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure Id:
102608
Total Sample Size:
703 All Companies
Performers:
25th
Median
75th
Key Performance
Indicator:
Yes

Compute this Measure

Units for this measure are percent.

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Percentage of salaries for all senior management/executive employees that is performance-related pay

Key Terms

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Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Median

The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.

Measure Scope

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Cross Industry (7.2.1)

  • 7.5.1.1 - Develop salary/compensation structure and plan (10498) - Creating the framework for the provision of salary/compensation to employees. Break down the salary structure into different components such as fixed pay, variable pay, bonus, and allowances such medical allowance, and rent allowance, etc. Develop, adjust, and maintain a pay structure.
  • 7.5.1.2 - Develop benefits and reward plan (10499) - Developing a plan for provision of rewards, commission, and benefits to employees. Plan health benefits, retirement benefits, non-monetary benefits, etc.
  • 7.5.1.3 - Perform competitive analysis of benefit and rewards (10500) - Analyzing and evaluating the organization's benefits and rewards plan. Compare/Benchmark the benefits and employees plan with other organizations to adhere to industry standard practices.
  • 7.5.1.4 - Identify compensation requirements based on financial, benefits, and HR policies (10501) - Recognizing the employee requirements for compensation on the basis of the financial, benefits, and HR policies of the organization. Recognize individual compensation requirements regarding the financial policies of the organization. Consider the benefits plan and overall HR policies while selecting compensation requirements.
  • 7.5.1.5 - Administer compensation and rewards to employees (10502) - Managing the provision of compensations and rewards to the employees while maintaining consistency with the compensation and benefits plan. Follow the compensation and benefits plan rigorously in order to avoid any discrepancies.
  • 7.5.1.6 - Reward and motivate employees (10503) - Rewarding and stimulating the performance efforts of employees. Create methods for motivating employees. Spur extrinsic and intrinsic motivation.