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05/06/2019

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My Compensation Audit approach asks:
(a) what do you understand the policy to be on xxxxxx?
(b) what do you see the actual practice to be on xxxxxx?
(c) what do you think the policy should be on xxxxx?

When reviewing the confidential results with each top exec, they tend to be astounded to learn that no one really understands (a) but they all agree on (b) and (c). Each typically was ashamed to admit that s/he had no idea what the real policy was. Such feedback about the hidden truths that should be shared is quite useful to smart executives.

Jim,

Thanks for sharing that. My experience parallels yours. I've witnessed executives completely completely contradict one another in back-to-back employee sessions (when different top executives would join each meeting for their "commentary") when asked identical policy questions.

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