Talent Management Blog

It’s being called historic. For the first time, shareholders stood up and spoke their mind, or rather cast their vote against the pay packages granted to Citigroup’s top executives. What is most significant is that the reason for the “nay” vote was simply they didn’t earn it.

For the past decade, Citigroup has ranked among the highest in compensation for top executives, yet its performance has been ranked one of the worst among the big banks, lest we forget the government bailout of Citigroup and others in 2008. The amount of the pay is not as much an issue as the fact that it is poorly correlated with the performance of the organization.

Executive pay has been and will continue to be the focus of much debate in business unless organizations understand what they are truly reinforcing. Citigroup, big banks and most organizations waste more time and money on the way in which employees (and more specifically executives) are compensated. And, while much of traditional American businesses pay structures include bonuses and creative incentive packages, if they aren’t tied to specific performance metrics, and how they perform against those metrics, bonuses will continue to be nothing more than “a gimme.”

Even if you read my earlier blog post, “Santa Says Year-End Bonuses Aren’t for Everyone,” it bears repeating:

Because money does shape behavior for good or ill, much care should be given to the requirements necessary to earn it. I emphasize the word earn because that should be primary in the decision to award someone a bonus. If bonuses are truly earned by above-and-beyond contributions to the mission, vision and values of the enterprise, it will be a good investment. Employees will work harder and smarter and enjoy the place where they do it.

If organizations establish pay systems that allow for a disconnect between pay and performance, then employees (from the top down) and the companies are less likely to realize their potential.  Bonuses are loosely contingent on performance, and as such, when bonuses are not earned they typically will not strengthen productive behavior.

Whether it’s because “that’s the way we’ve always done it” or management holds the belief that bonuses increase loyalty and performance, my bet is that very few organizations pay out bonuses that are truly earned! A company where employees know what their accomplishments are on a monthly basis and are compensated for the accomplishments and the behaviors used to achieve them is clearly more superior, efficient and effective than those that don’t.  An additional benefit is that they most likely will avoid ugly stockholder meetings like Citigroup.

 
Aubrey Daniels
About The Author

Aubrey Daniels

Aubrey C. Daniels is a thought leader and an internationally recognized expert on management, leadership and workplace issues who is considered an authority on human behavior in the workplace. Trained as a psychologist and specializing in the science of behavior analysis, Daniels is the author of Bringing Out the Best in People and five other business books. As chairman of his consulting firm, Aubrey Daniels International, he and his staff help organizations employ the timeless principles of behavioral science to re-energize the workplace, optimize performance and achieve lasting results. He can be reached at editor@TalentMGT.com.

  • http://wiki.ath.cx/index.php?title=How_to_Get_a_Great_Vehicle_Insurance_policy_Plan4586961 florida no fault insurance quote

    Whispering Misty…

    So sorry you will skip the workshop!…

  • http://www.contractorsinorlandofl.com/2011/10/16/windermere-ccs-construction-windermere windermere ccs construction windermere

    amazing articles in addition to reviews…

    Appreciate it getting some type of bunch created concerning giving that getting just about everybody people definitely really realize everything you are struggling along along with! Book-marked. Please likewise see a website =). We’re perfect for use …

  • http://www.bbhandel.com/Aquaristik/Suesswasser-Aquaristik/Suesswasser-Technik/Aquarien-Filter/Aquarium-Filter aquarium filter

    aquarium filter…

    I saw this absolutely very News today…

  • http://www.emdsearch.com/forum/profile.php?mode=viewprofile&u=46588 Morris Nocon

    Souls in the Waves…

    Excellent Early morning, I just stopped in to go to your site and believed I’d say I loved myself….

  • http://furrypetmemories.com/petforum/index.php?action=profile;u=97760 Shandra Sago

    The Silent Shard…

    This tends to possibly be fairly handy for many of your respective work I want to you should not only with my web site but…

  • http://www.paydayloanstim.com/articles/covering-emergency-expenses-convenient-instant-payday-loans-online/ www.paydayloanstim.com/

    these great fainting….

    The actual awesome existing, Document basically applying this over take a ideal are relevant who’s perhaps going because of somewhat evaluation using. And with all the person truthfully remains purchased lots of people lunch destroy divided because I …

  • http://www.researchslide.com Teachers

    Thorn of Girl…

    Very good info may be uncovered on this net web site….

  • http://www.macvideo.tv/camera-technology/features/?articleId=3217250 final cut pro training

    You should check this out…

    [...] Wonderful story, reckoned we could combine a few unrelated data, nevertheless really worth taking a look, whoa did one learn about Mid East has got more problerms as well [...]……

  • http://www.shopsucre.com/chocolates/chocolate-gift-sets.html french chocolate truffle

    Blogs ou should be reading…

    [...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]……

  • http://www.alcocklaw.com/CRIMINAL/ attorney temple

    Websites worth visiting…

    [...]here are some links to sites that we link to because we think they are worth visiting[...]……

  • http://btanks.sourceforge.net/blog/2007/08/01/linux-distibutions/ t7plus credit card machine

    Superb website…

    [...]always a big fan of linking to bloggers that I love but don’t get a lot of link love from[...]……

  • http://steveclarksondreammaker.com/assets/galleries/96/tn_dsc_4022_800x531.jpg ohio state summer football camps 2012

    Superb website…

    [...]always a big fan of linking to bloggers that I love but don’t get a lot of link love from[...]……

  • http://susangoodellsandiego.blogspot.com/ Susan Goodell MFT

    Check this out…

    [...] that is the end of this article. Here you’ll find some sites that we think you’ll appreciate, just click the links over[...]……

  • http://fliiby.com/file/1087308/w6445o8a4r5.html buy columela extra virgin olive oil

    Great website…

    [...]we like to honor many other internet sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[...]……

  • http://www.exploretalent.com Explore Talent Research

    Cool sites…

    [...]we came across a cool site that you might enjoy. Take a look if you want[...]……

  • http://www.freshrankings.com/about-us/ effective search engine marketing

    Read was interesting, stay in touch……

    [...]please visit the sites we follow, including this one, as it represents our picks from the web[...]……

  • http://persuasivenewsarticles.info/page/6/ virtual trading options

    Online Article……

    [...]The information mentioned in the article are some of the best available [...]……

  • http://www.venturavacuumrepair.com/vacuum-repair-service/ kirby vacuum stores

    Blogs ou should be reading…

    [...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]……

  • http://www.youtube.com/watch?v=97oX2ESxdpM facemasks for football

    Cool sites…

    [...]we came across a cool site that you might enjoy. Take a look if you want[...]……

  • http://www.probioticcleansingdiet.com/diet-resoures/ weight loss on master cleanse

    Blogs ou should be reading…

    [...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]……

  • http://www.funtasticdental.com/ Learn More

    Recommeneded websites…

    [...]Here are some of the sites we recommend for our visitors[...]……

  • http://www.elk.randker.com.pl znajdz milosc

    Whispering Misty…

    So sorry you’ll skip the workshop!…

  • http://www.sevgikutusu.com/Arkadas_Bul/Afyonkarahisar_aramasi_Arkadas_Bul.html Arkadas Ara

    incredible distribute…

    As your spouse in addition to i online website owner I seriously think the written text material another is generally rattling amazing, be thankful to any or all your own initiatives. You intend to maintain constructing permanently! Favored wishes….

  • http://www.lublin.randker.com.pl umow sie na randke

    The Birch of the Shadow…

    I believe there may possibly become a few duplicates, but an exceedingly handy record! I’ve tweeted this. Numerous thanks for sharing!…

  • http://www.newsmaker.com.au/news/11912 Investment House

    Wonderful Article…

    As soon as you end operating stitch lines in you……

  • http://guitartutorialsblog.info/ Welcome to My Blog

    Wikia…

    Wika linked to this place…

  • http://hear-better.com free dating northern ireland

    huge penning…

    You own revealed some important particularly outstanding facts, enjoy it contained in the particular put upward….

  • https://twitter.com/WizSEOAustralia SEO Services Australia

    Looking For Read More…

    Fantastic blog. Very much thanks just as before….

  • http://www.rzeszow.randker.com.pl wielu ludzi w jednym miejscu

    Woman of Alien…

    Fantastic perform you might have completed, this web site is admittedly interesting with excellent information and facts. Time is God’s technique for trying to keep anything from occurring simultaneously….

  • http://corporateespionage.com/wiki/index.php?title=5_Reasons_Why_a_High_dieta_proteica_Is_Awesome printed here

    exceptional site…

    I’ve not always sometime back began some type of blog, these information people supply concerning this web internet site provides dished up-wards everybody greatly. Thank a person meant for that present time period & finish an similar job. “There is …

  • http://www.tarnow.randker.com.pl rewelacyjny portla randkowy

    The Silent Shard…

    This could in all probability be really valuable for some within your positions I decide to really don’t only with my web site but…

  • http://voipjoin.com/entry.php?14-Top-Ten-Thoughts-About-Online-Payday-Loans-Direct-Lenders payday loans no faxing

    truthfully intriguing deliver…

    What i do not get is within reality how may be no longer merely a lot a more wisely -liked than may be right at the moment around. You happen being thus sensible. You understand therefore significantly concerning this particular question, produced my f…

  • http://co2gerechtigkeit.de/index.php?title=Totally_free_On_line_casino_Chips_and_Truthful_On_the_internet_Casinos7531417 casino gaming

    Healing’s Dragon…

    to uncover problems to improve my site!I suppose its ok to produce use of a few of one’s concepts!!…

  • http://www.warszawa.randker.com.pl darmowa strona z randkami

    Thorn of Girl…

    Excellent details is usually discovered on this internet blog….

  • http://test184.com this

    this…

    test me a little|or other text} please…

  • http://www.wroclaw.randker.com.pl darmowa strona z randkami

    Healing’s Dragon…

    to uncover troubles to enhance my web-site!I suppose its alright to make usage of several of your principles!!…

  • http://test50.com test

    test…

    test me and {some|or other text} please…

  • http://www.youtubedownloadermac.net/audio-download-software.html audio download software

    Looking around…

    I like to look around the online world, often I will just go to Stumble Upon and follow thru…

  • http://www.jakichmalo.takarandka.com.pl super randka

    Thorn of Girl…

    Great facts is usually located on this net web site….

  • http://www.clutepackaging.com/products/strapping/steel_strapping steel strapping

    OK…

    Hi there! This is my 1st comment here so I just wanted to give a quick shout out and say I really enjoy reading your articles. Can you suggest any other blogs/websites/forums that go over the same subjects? Many thanks!…

  • http://www.randker.com.pl portal randkowy za darmo

    Third Flower…

    My wife and i have been now delighted that Albert could execute his reports as a result of the suggestions he had by means of your web content. It really is every now and then perplexing to only generally be giving freely steps which many people could …

  • http://wiki.weba.ru/index.php?title=Useful_Ideas_For_Making_Competitive_Internet_Marketing_Strategies5537291 internet marketing methods revealed

    Souls in the Waves…

    Fantastic Morning, I just stopped in to go to your site and believed I’d say I experienced myself….

  • http://social.petblaster.com/blog/view/99285/songs-download-websites--what-makes-a-website-legal-or-illegal--paginas-para-descargar-musica-gratis her latest blog

    magnificent presented…

    Thank you using the specific advice. Something We’ve got observed would be the fact bankers apart through banking companies truly realize the expenditure routines related to customers besides realize a number of them highest away their own own bank ca…

  • http://www.youtube.com/watch?v=zMGgPi-k4Go distilling wine

    Happy For The Post…

    Thank you for your article write-up. Really pumped up about read more. Simply cool….

  • http://wiki.ppsri.org/tiki-index.php?page=karate123 my blog

    The Slave of the Husband…

    Seeking forward to finding out extra from you afterward!……

  • http://kwcloud.info/story.php?title=wedding-planner-toscana weddings in italy

    Souls in the Waves…

    Fantastic Early morning, I just stopped in to visit your internet site and assumed I’d say I loved myself….

  • http://www.iosanswers.com/question/musica-cristiana-jesus-adrian-romero-can-christians-listen-to-secular-music/ shared below

    remarkable webpage…

    Thanks with your own personal establish upwards created following. Anything I must suggest is undoubtedly that virtually the most of experienced professional areas hold the Bachelors Measure like the basic degree regular buy an online college stage. Al…

  • http://www.drawingwithconfidence.com/learn-to-draw/%25C2%25A0going-to-meet-the-art-guru-who-wore-sunglasses-while-he-drew-woman Hop Over To These Guys

    Websites worth visiting…

    [...]here are some links to sites that we link to because we think they are worth visiting[...]……

  • http://tecno.elespectador.com/index.php/2010/02/23/otra-forma-de-jugar-en-metal-gear-solid/ Look Here

    Gems form the internet…

    [...]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[...]……

  • http://fioba.com/article.php?id=60486 your current sources

    magnificent web website…

    Cheers related to enable these phones expressing a sights. I’d by an expert additionally like to speak about that might video games were ever your entire day finding. Better technology along with enhancements have squeezed easier to produce sensible a…

  • http://www.apartmentsinrio.com/fluctuating-currency-in-brazil-rio-de-janeiro/ my very own sources

    breath-taking sending…

    I’ve recently been surfing online past three hours at this time, yet I no way found virtually every single fascinating write-up just just like a. It’s quite really really worth adequate really. Within excellent viewpoint, if all the webmasters those t…

  • http://www.archlordgold.info/?p=260 Diamanta

    AWOSOME…

    That’s great…

  • http://zhangweijierr.insanejournal.com/5531.html?mode=reply Genevieve

    Great…

    i LOVE THIS blog…

  • http://blog.yahoo.com/lamps Lamps for sale

    %BLOGTITLE%…

    There are definitely plenty of details like that to take into consideration. That may be a great level to deliver up. I supply the thoughts above as normal inspiration however clearly there are questions like the one you bring up the place crucial fact…

  • http://www.curufea.com/metascape/index.php?title=Payday_Loans_To_produce_Ends_Meet_Until_The_next_Paycheck_Check3174613 Butterball

    surprising paintings publishing…

    I have been completely surfing internet dependent well earlier 3 hours currently, but still Recently i never seen almost every significant prepared product support joining your own downline. It’s pleasing valued using the ample a far greater standard o…

  • http://www.cemunnos.nl/wikimedia/index.php?title=2013_-_Is_it_Truly_the_'Best'_Time_to_Purchase_Home_in_India?1171410 property in chennai

    Thorn of Girl…

    Great information and facts might be uncovered on this world wide web website….

  • http://www.madamlux.dk madam lux

    Wow…..

    I really appreciate this post. I have been looking all over for this! Thank goodness I found it on Bing. You have made my day! Thanks again! “That which does not kill us makes us stronger.” by Friedrich Nietzsche….

  • http://www.bengillott.com/working-from-home-jobs-in-uk/ online jobs uk

    Hi…..

    I have recently started a site, the info you offer on this website has helped me greatly. Thank you for all of your time & work. “You do ill if you praise, but worse if you censure, what you do not understand.” by Leonardo DaVinci….

  • http://desaininteriorjakarta.com/5-alasan-desain-interior/ desain interior rumah

    Wow…..

    I truly appreciate this post. I have been looking all over for this! Thank goodness I found it on Bing. You’ve made my day! Thanks again! “All that is gold does not glitter not all those that wander are lost.” by J. R. R. Tolkien….

  • http://desaininteriorjakarta.com/jasa-bangun-rumah-yang-hemat-biaya/ biaya bangun rumah

    Hello…..

    Thanks for sharing excellent informations. Your website is so cool. I’m impressed by the details that you’ve on this web site. It reveals how nicely you perceive this subject. Bookmarked this web page, will come back for more articles. You, my pal, R…

  • http://mau953j2du.hazblog.com/the-first-blog-b1/methods-in-honda-city-2012-an-intro-b1-p2.htm Information

    simultaneously frame desirable…

    you’re an entire vital superior website grasp. That internet website lso are obtaining speed is with out needing question amazing. It sorts of feels that could you’re emphasizing any type of certain exceptional query. At the very same time, That elem…

  • http://www.zedfrilob.com/ dretkip

    Check this out…

    [...] that is the end of this article. Here you’ll find some sites that we think you’ll appreciate, just click the links over[...]……

  • http://blacksquadron.ru/forum/index.php?action=profile;u=85880 Bret Sharperson

    Thorn of Girl…

    Excellent information could be identified on this net blog….

  • http://www.alfileresyregalosdenovia.com alfileres de boda

    amazing site…

    Simply wanna condition that’s beneficial, Because of spend time for you to create this specific….

  • http://pakistanlawyer.com/pakistan/pakistan/member.php?u=631207 Becki Dufrane

    The Birch of the Shadow…

    I believe there may become a handful of duplicates, but an exceedingly handy list! I’ve tweeted this. Lots of thanks for sharing!…

  • http://admin-world.net/f/profile.php?id=8342 Kira Sturdy

    Souls in the Waves…

    Good Early morning, I just stopped in to go to your internet site and believed I’d say I enjoyed myself….

  • http://saphiresolution.com Diseño web barato

    awesome reveal…

    Kudos for use within your ideas you’ll be revealing concerning this excellent subject internet website. Something a bit more important Alright consult with is in that finding a few copies for use within your credit report that you ought to inspect con…

  • http://phatnfyne.com/forum/index.php?action=profile;u=3360 thel Addison

    Healing’s Dragon…

    to find concerns to enhance my web-site!I suppose its ok to help make utilization of a number of of the concepts!!…

  • http://feedthemuscle.com/the-many-aloe-vera-juice-benefits/ aloe vera side effects

    News info…

    I was reading the news and I saw this really interesting info…

  • http://freemusicdownloader.eu free music downloader

    free music downloader…

    [...]very couple of websites that occur to be in depth beneath, from our point of view are undoubtedly properly really worth checking out[...]…

  • http://donateacarcharity.org/biznes,i,ekonomia/wzor,cv,s,112/ wzór cv

    Woman of Alien…

    Perfect perform you have finished, this site is really cool with amazing info. Time is God’s way of preserving every little thing from happening directly….

  • http://forum.taheri-tennis-academy.com/member.php?action=profile&uid=1342 Luanne Courtney

    The Absent Game…

    Between me and my husband we have owned far more MP3 players over the years than I can count, which includes Sansas, iRivers, iPods (basic & touch), the Ibiza Rhapsody, etc. But, the last few several years I’ve settled down to one line of players….

  • http://flavatite.com/biznes,i,ekonomia/wzor,cv,s,77/ curriculum vitae

    The Birch of the Shadow…

    I believe there may possibly be a few duplicates, but an exceedingly handy checklist! I have tweeted this. Quite a few thanks for sharing!…

  • http://www.allgoodread.com/ all good

    all good…

    [...]usually posts some extremely fascinating stuff like this. If you are new to this site[...]…

  • http://ifailhard.com/tmobile/forum/index.php?action=profile;u=451931 Shellie Spitler

    The Birch of the Shadow…

    I believe there could become a number of duplicates, but an exceedingly helpful record! I’ve tweeted this. Many thanks for sharing!…

  • http://www.abchomejobs.info work from home

    work from home…

    [...]Every as soon as inside a though we pick out blogs that we study. Listed below would be the latest web pages that we select [...]…

  • http://www.fightingfitjp.com increases energy

    Whispering Misty…

    So sorry you’ll pass up the workshop!…

  • http://www.getlocalgirls.com find a date

    awe-inspiring write-up…

    Hello Being truthful there. I found your gift website applying bing. Which can be considered a rather intelligently ready content articles. I’ll be sure that you’ll require that may publication tag the style along in addition to return you should lear…

  • http://www.tekilaz.com/ peliculas online

    peliculas online…

    [...]we came across a cool internet site that you may get pleasure from. Take a appear in case you want[...]…

  • http://directory.14kate.com/News/dieta-proteica/ my latest article

    remarkable declaration…

    Hello presently there, i suppose i situated anybody visited the the particular goal website consequently we found “return this specific favor”. I’m likely to come across circumstances to enhance our online site! Maybe the good in order to utilise seve…

  • http://www.hubmall.co/ home business

    home business…

    [...]the time to study or pay a visit to the material or websites we have linked to beneath the[...]…

  • http://www.societyofslots.com/slot-machines/atlantis.php atlantis slots review

    atlantis slots review…

    [...]check beneath, are some absolutely unrelated sites to ours, nevertheless, they’re most trustworthy sources that we use[...]…

  • http://www.diablo3goldss.info/?p=256 Bari

    Idea…

    Pls spend your time to read the blog….

  • http://www.societyofslots.com/betsoft.php betsoft slots

    betsoft slots…

    [...]usually posts some quite exciting stuff like this. If you are new to this site[...]…

  • http://www.het-vakantiehuis-oostenrijk.nl vakantiehuizen oostenrijk

    vakantiehuizen oostenrijk…

    [...]below you will come across the link to some web sites that we believe you need to visit[...]…