PBSs should be ‘road tested’ on the last complete business cycle
When you think you have a good scheme test it on the results of the last full business cycle, the period between the last two recessions. View the extent of the bonus on the net profit.
You need to appraise the PBS as you would a […]
PBSs should avoid any linkage to share price movements
No bonus should be pegged to the stock market price as the stock market price does not reflect the contribution staff, management and CEO has made.
Only a fool believes that the current share price reflects the long term value of an organisation. Just because a buyer, often […]
(extract from “The leading-edge Manager’s guide to success – strategies and better practices”. The book is available Amazon, see link on www.davidparmenter.com
By David Parmenter
Performance bonuses give away billions of dollars each year based on methodologies where little thought has been applied. Who are the performance bonus experts? What qualifications do they possess to work […]
Those in the finance function may not be natural marketers of their own value to the organisation. But they can – and should – learn, as David Parmenter explains*.
David Parmenter is an international presenter and writer. parmenter@waymark.co.nz
* This article is an extract from Winning CFOs: Implementing and Applying Better Practices published by John Wiley & […]
The balanced scorecard (BSC) was one of the major breakthroughs in the nineties. The groundbreaking work of Kaplan and Norton brought to management’s attention the fact that strategy had to be balanced, needed to be implemented and performance should be measured using a more holistic approach.
Unfortunately many performance-related initiatives have failed and the BSC has […]