HR’s missed opportunity (executive pay)

Citation

(2008), "HR’s missed opportunity (executive pay)", Human Resource Management International Digest, Vol. 16 No. 7. https://doi.org/10.1108/hrmid.2008.04416gad.008

HR’s missed opportunity (executive pay)

Article Type: Abstracts From: Human Resource Management International Digest, Volume 16, Issue 7

Marquez J. Workforce Management (USA), 5 May 2008, Vol. 87 No. 8, Start page: 1, No. of pages: 5

Purpose – argues that US human resource managers have missed an opportunity to increase their organizational influence because they have failed to get involved in the issue of executive pay. Discusses why the opportunity arose and why they have failed to take advantage of it. Design/methodology/approach – cites the need for US companies to disclose how they determine executives’ pay and benefits, and the stated wish from the Securities and Exchange Commission that these should be linked to executive performance as being the opportunity missed by human resource managers. Quotes the opinions of US pay and benefits consultants and senior human resource managers on why the opportunity was missed. Discusses how human resource managers can advise their boards of directors on how to set executive pay, and also play a key role in explaining how executive pay is set to shareholders, who are getting increasingly militant on the issue. Lastly, considers how advising on executive pay could open the door to influencing executive retention and succession planning. Findings – acknowledges the challenges associated with advising on executive pay but argues that it should be the responsibility of human resource managers. Also underlines that shirking the responsibility will lose them the opportunity to wield influence at board level. Originality/value – criticizes US human resource managers for avoiding the issue of executive pay. ISSN: 1092-8332 Reference: 37AM766

Keywords: Senior management, Remuneration, Bonuses, Human resource management, United States of America