Friday, December 15, 2006

Asking the tough question!

Just noticed this article on Fortune.

Are You Making Too Much Money?

I found the following insightful questions in the article...

  • How does our pay compare to the competition in total, not just salary?
  • Was our management team outperforming the competition?
  • And was this related to their specific performance or just being in the right place at the right time?
  • To what extent does our pay vary with performance?
  • Do we have enough variability in that pay, or are we building in expense that will hurt us if and when the next retail downturn comes?
  • And what principles should guide the value sharing between management and staff and the shareholder?
Questions from Alison Winters chair of Nordstrom's compensation committee to their board.