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10/09/2012

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1. Yes, CEO pay staggered badly over the last decade and has barely returned to its old absolute levels. But note that the incumbent turnover means that the current CEOs are usually not the ones who saw reductions. And those drops normally occurred in actual payments from CEO contingent compensation elements. The current practice of less reliance on stock options and more use of stock awards and non-equity incentives is expected to reduce that voilatility. (No comment, except to note that the change will still NOT bring CEO pay down to Drucker-ratio levels.)

2. To my recollection, all the past research has pretty conclusively established the consistent negative correlation between control and stress. If you have a lot of one, you have less of the other. No control = high stress. In The Day, the most stressed employee group was the Executive Secretaries (now rebranded Administrative Assistants).

It is strange that as traditionally organized organizations disappear, the diminishing few at the top of their pyramids continue to stretch their relative lead over the vast majority. Perhaps this is why employers now emphasize granting more control to underlings, to reduce their stress in lieu of other remuneration.

Well kudos to you Derek for taking on this topic. I've said enough about exec comp in the past so nothing more to add. Interesting stats.

Derek - It's probably me, but I'm not sure I get the point. Executive compensation discussions in the media have increased, in part, because of more media introduced over the decade or so (internet, cable/satellite TV, social media, etc.) which provide an outlet for such discussions. Prompted, as you point out, because of the increasingly large monetary gap in lowest paid to highest paid employees, not so cleverly disguised in the current political debate over the 'middle class'.

The organizational structure changes which will occur due to the changing business model we are experiencing will be accompanied, I believe, by radical changes in the way compensation is defined, prompted by a more egalitarian and holistic view of employee/employer relationships.

Since I have subscribed to the "Compensation Cafe" (admittedly for a short period of time), I have seen the above only hinted at. I'd love to see a more robust discussion.

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