Musings on Performance and Compensation. A full listing, with summaries, of all Performensation Blog Articles published between June 2010 and December 2010

1. JULY - DECEMBER 2010
MUSINGS ON COMPENSATION AND PERFORMANCE
LOCATION: COMPENSATION
CAFE DATE: DECEMBER
20,
2010
Too
Heavy
for
Any
Amount
of
Money
Happy
Monday!
Were
you
excited
and
ready
for
work
today?
Was
the
weekend
long
enough?
I
keep
hearing
from
people
that
they
are
puKng
in
more
effort
and
longer
hours
than
ever
before.
Workloads
are
increasing,
but
companies
aren’t
hiring.
We
all
know
that
overworking
employees
leads
to
progressively
diminishing
returns.
But,
when
is
more
work
simply
too
much?
MORE...
LOCATION: COMPENSATION
CAFE DATE: DECEMBER
10,
2010
Welcome
to
the
Team,
We’re
Thinking
About
Firing
You
I
was
chaKng
with
a
colleague
about
a
talented
new
hire
he
was
hoping
his
company
would
be
able
to
bring
on.
The
candidate
aced
her
interviews
and
came
with
high
recommendaQons.
She
went
to
the
right
schools
and
interned
at
the
right
firms.
Everything
seemed
on
track
unQl
she
received
her
offer
leUer.
The
leUer
was
all
roses
and
sunshine
unQl
you
got
to
just
about
the
last
paragraph.
Early
on
it
menQoned
how
impressive
she
was
and
how
they
would
be
happy
to
MORE...
LOCATION: COMPENSATION
CAFE DATE: NOVEMBER
29,
2010
Offer
the
World
First
and
Money
Second
My
16-­‐month
old
nephew
inspires
today’s
posQng.
The
other
day,
while
watching
a
video
of
him,
I
couldn’t
help
be
amazed
at
the
vastness
o
f
his
world.
This
is
true
both
in
physical
space
and
size
relaQve
to
his
liUle
body.
He
lives
in
a
small
town
in
Nebraska,
but
it
couldn’t
seem
larger
to
him.
I
o[en
envision
him
in
twenty
years.
This
seemingly
large
world
will
in
fact
turn
out
to
be
very
small.
Nearly
every
adult
male
in
his
area
works
for
the
railroad
or
in
some
capacity
of
agriculture.
The
physical
MORE...
LOCATION: COMPENSATION
CAFE DATE: NOVEMBER
16,
2010
When
KISS
becomes
WISH
-­‐
Understanding
CompensaQon
We
have
all
heard
of
the
KISS
(Keep
It
Simple
Stupid)
principle,
but
when
does
KISS
become
a
WISH
(When
Is
Simple
Harmful)?
Think
about
the
color-­‐coding
at
U.S.
Airports.
The
Homeland
Security
Advisory
Systems
has
been
the
“HIGH”
threat-­‐level
orange
since
shortly
a[er
the
color-­‐coding
system
went
into
place.
However,
how
many
people
know
what
the
orange
level
really
represents?
There
is
a
level
indicated
by
the
color
red
above
it
and
yellow,
green
and
blue
levels
below
it.
The
simplicity
of
MORE...

2. MUSINGS ON COMPENSATION AND PERFORMANCE
LOCATION: COMPENSATION
CAFE DATE: NOVEMBER
1,
2010
Management
is
About
Decisions
&
Accountability
I
am
a
casual
baseball
fan
who
has
loved
this
year’s
post-­‐season
baUles.
But
truthfully,
I
have
o[en
wondered
what
a
manager
actual
does.
There
are
several
coaches
for
every
team,
hiKng,
first
base
etc,
but
only
one
manager.
It
seems
like
he
assigns
the
baKng
order
and
picks
a
pitcher
and
then
sits
through
the
game
as
others
play
it
on
the
field.
While
watching
a
recent
San
Francisco
Giants
win
over
the
Phillies
I
finally
understood
a
baseball
manager's
real
role.
The
manager’s
true
purpose
is
to
make
MORE...
LOCATION: COMPENSATION
CAFE DATE: OCTOBER
25,
2010
Neutralize
the
Mercury
in
Your
CompensaQon
Pool
It
doesn’t
take
much
mercury
to
poison
a
water
source.
Just
two
parts
per
billion
(2
ppb).
That’s
the
maximum
amount
of
mercury
that
the
EPA
and
FDA
allow
in
drinking
water.
Any
more
than
this
and
your
body
may
accumulate
this
poison
and
it
will
slowly,
but
severely
sicken
you.
You
may
wonder
why
I
am
giving
a
clean
water
lesson
on
the
CompensaQon
Cafe
blog.
Well,
every
company
has
mercury
in
its
pool
of
employees.
We
call
them
malcontents,
MORE...
LOCATION: COMPENSATION
CAFE DATE: OCTOBER
13,
2010
How
Fast
Would
You
Run
in
the
Dark?
It’s
3AM
and
it’s
almost
pitch
black
outside.
The
damp
chill
of
the
dead
night
air
is
on
your
bare
arms.
You
can
barely
see
your
hand
in
front
of
your
face.
An
unseen
voice
tells
you
will
be
running
a
full
marathon.
Suddenly
someone
points
you
in
a
direcQon
and
tells
you
run
as
fast
as
you
can.
Then
they
disappear.
How
fast
would
you
run?
How
long
would
you
run?
At
what
point
would
you
simply
stop
running
and
wait
for
MOST POPULAR daylight?
ARTICLE OF 2010 MORE...
LOCATION: COMPENSATION
CAFE DATE: SEPTEMBER
28,
2010
CompensaQon
Top
Chef
Have
you
ever
noQced
how
compensaQon
plans
can
be
like
Indian
food?
The
list
of
ingredients
sounds
exoQc,
but
is
not
very
long.
Each
ingredient
is
used
for
a
specific
reason
and
care
must
be
taken
not
to
use
too
much
or
too
liUle.
Hundreds
of
recipes
can
be
created
by
combining,
adding
or
removing
a
limited
number
of
ingredients.
The
final
product
is
determined
by
how
carefully
the
selected
ingredients
are
cut,
cooked
and
what
dish
is
being
served
to
compliment
the
unique
combinaQon
of
flavors.
Most.
MORE...

3. MUSINGS ON COMPENSATION AND PERFORMANCE
LOCATION: COMPENSATION
CAFE DATE: SEPTEMBER
16,
2010
Equity
CompensaQon
is
in
a
Class
of
its
Own
The
origin
of
the
word
equity
is
not,
as
many
people
think,
the
word
“equal.”
In
fact,
its
origin
is
almost
the
opposite
of
equal.
“Equite”
is
a
Roman
word
with
the
following
definiQon:
"members
of
a
specially
privileged
class
derived
from
the
ancient
Roman
cavalry
and
having
status
intermediate
between
those
of
senatorial
rank
and
the
common
people."
Equity
is
about
privilege.
Looking
back,
horsemen
have
almost
always
been
considered
a
privileged
class.
On
MORE...
LOCATION: COMPENSATION
CAFE DATE: SEPTEMBER
1,
2010
The
Challenge...
Summer
Time,
Pools
and
Work
"Uncle
Dan,
give
me
a
challenge!"
My
12-­‐year
old
niece
was
at
the
edge
of
the
huge
community
pool.
She
and
her
brother
were
enjoying
the
last
“pool
day”
of
summer.
They
had
been
playing
and
leaping
off
the
diving
boards
for
almost
an
hour.
Give
me
a
challenge!
The
first
translaQon
of
this
phrase
was
easy.
“Make
this
pool
interesQng,
my
brain
is
geKng
bored.”
As
she
swam
underwater
across
the
pool
in
four
breaths,
she
turned
and
waved
at
me
a[er
every
breath.
The
second
translaQon
MORE...
LOCATION: COMPENSATION
CAFE DATE: AUGUST
23,
2010
Are
Employee
Engagement
Surveys
Like
New
Year’s
ResoluQons?
RetenQon
during
bad
Qmes
is
easier
than
when
Qmes
are
good.
It’s
a
fact;
people
look
for
safety
in
dark
Qmes.
Ironically,
when
it
comes
to
retenQon,
bad
Qmes
are
what
keep
HR
pros
awake
at
night.
There
is
the
belief
that
when
business
turns
upward,
employees
become
moQvated
to
start
looking
for
engagements
outside
their
current
jobs.
This
concern
of
not
being
able
to
retain
top
talent
is
o[en
reinforced
by
the
surveys
employers
look
to
for
“data”.
MORE...
LOCATION: COMPENSATION
CAFE DATE: AUGUST
12,
2010
The
Top
3
Provisions
of
Dodd-­‐Frank..at
Least
for
the
Moment
I
once
had
a
colleague
who
was
an
acronym
addict.
His
philosophy
was
anything
more
than
a
TLA
(three
leUer
acronym)
was
inefficient
and
confusing.
If
the
name
of
a
product
or
service
required
more
than
a
TLA,
he
would
insist
it
be
changed
to
something
shorter
(not
my
strong
suit).
I
have
been
doing
a
lot
of
presentaQons
on
the
Dodd
Frank
Wall
Street
Reform
and
Consumer
ProtecQon
Act
and
the
Qtle
alone
nearly
fills
my
twiUer
message
box.
For
the
sake
of
simplicity
and
my
tweet
stream,
I
MORE...

4. Smiley faced curve annotated
MUSINGS ON COMPENSATION AND PERFORMANCE
LOCATION: COMPENSATION
CAFE DATE: AUGUST
2,
2010
Properly
Driving
Performance
Can
Pay
for
Itself
1,000
X
or
More
Step
right
up!
I
want
to
offer
you
an
investment
where
for
every
$1
contributed
you
have
the
potenQal
of
earning
$1,000!
In
fact,
each
dollar
may
have
the
potenQal
of
earning
a
million
dollars!
While
this
seems
unlikely,
or
perhaps
even
impossible,
it
is
true
that
money
properly
invested
in
driving
performance
can
achieve
these
results.
What
if
someone
showed
you
a
way
for
your
company
to
invest
$200,000
and
drive
returns
of
toward
$2
billion?
MORE...
LOCATION: COMPENSATION
CAFE DATE: JULY
22,
2010
Is
Your
CompensaQon
Program
the
PreKest
House
on
the
Street?
I
live
in
San
Francisco
and
as
I
walk
the
streets
it
is
impossible
to
ignore
the
magnificent
homes
all
over
the
city.
There
are
an
incredible
variety
of
styles
and
many
streets
are
lined
with
grand
Victorian
or
Edwardian
homes.
These
homes
are
generally
two
or
three
stories
high
and
include
many
interesQng
details.
Some
are
painted
in
a
monotone
and
most
are
painted
in
two
or
three
colors
(the
base
and
the
trim),
but
occasionally
I
will
pass
a
home
that
stops
me
in
my
tracks.
These
magnificent
homes
MORE...
LOCATION: COMPENSATION
CAFE DATE: JULY
9,
2010
Pay
for
Performance
OR
JusQficaQon
for
CompensaQon?
That
is
the
QuesQon...
I
have
recently
done
several
presentaQon
covering
the
possible
impact
on
U.S.companies
once
Management
Say
in
Pay
(MSOP)
becomes
mandatory.
Around
the
world
MSOP
is
usually
defined
as
a
shareholder
vote
on
compensaQon
or
remuneraQon
pracQces.
The
pending
Dodd-­‐Frank
bill
includes
MSOP.
The
current
document
calls
for
a
vote
on
compensaQon
every
two
or
three
years.
In
most
countries
with
MSOP
this
vote
is
non-­‐binding,
but
it
gives
voice
to
a
powerful
MORE...
LOCATION: COMPENSATION
CAFE DATE: June
28,
2010
Everything
in
Compensa2on
is
Changing.
Is
That
Such
a
Bad
Thing?
"If
you're
in
a
bad
situa2on,
don't
worry
it'll
change.
If
you're
in
a
good
situa2on,
don't
worry
it'll
change."
~John
A.
Simone,
Sr.
There
have
been
Qmes
over
the
past
8
or
9
years
where
I
felt
like
"Chicken
LiUle"
yelling
that
the
sky
was
falling.
Countless
people
have
heard
me,
in
both
private
and
public
conversaQons,
selling
crazy
ideas
like:
"Say
on
Pay
is
coming";
"Performance-­‐
based
equity
is
our
future"
and;
"The
compensaQon
world
as
we
know
it
is
changing
MORE...

5. MUSINGS ON COMPENSATION AND PERFORMANCE
LOCATION: COMPENSATION
CAFE DATE: JUNE
28,
2010
In
Pursuit
of
the
Perfect
Performance
Metric
With
Management
Say
on
Pay
(MSOP)
rising
on
the
horizon,
we
are
all
faced
with
properly
implemenQng
a
new
performance
paradigm.
Academic
research
in
countries
that
have
had
MSOP
for
a
while
shows
that
its
true
impact
is
not
changes
to
compensaQon
levels
or
frequency.
Its
single
biggest
impact
is
the
broad
and
increasingly
deeper
use
of
performance
metrics
to
determine
pay.
This
is
especially
true
for
long-­‐term
instruments
such
as
equity
awards
and
deferred
compensaQon.
MORE...
LOCATION: EQUITY
COMPENSATION
EXPERT DATE: September
16,
2009
Cloudtasking
begins
as
MulQtasking
becomes
“old
school”
oday’s
blog
entry
is
not
specifically
oriented
on
equity
compensaQon,
but
is
instead
oriented
on
how
we
all
work
today.
I’m
talking
about
Cloudtasking.
Cloudtasking
is
my
new
term
for
working
while
immersed
in
our
mulQ-­‐media
world.
Today
I
noQced
that
I
was
listening
to
and
watching
an
online
presentaQon
on
webcasQng
best
pracQces
while
I
was
simultaneously
involved
in
a
text
conversaQon
on
my
Blackberry,
a
Skype
conversaQon
on
my
laptop,
and
a
review
of
an
old
PowerPoint
presentaQon.
At
the
MORE...
LOCATION: DATE:
Dan
Walter
is
the
President
and
CEO
of
Performensa2on
an
independent
compensa2on
consul2ng
firm
focused
on
the
needs
of
companies
not
in
the
Fortune
1000.
Dan’s
unique
perspec2ve
and
exper2se
includes
equity
compensa2on,
execu2ve
compensa2on,
performance-­‐based
pay
and
talent
management
issues,
Dan
is
on
the
board
of
the
Na2onal
Center
for
Employee
Ownership,
a
partner
in
the
ShareComp
virtual
conferences
and
the
founder
of
Equity
Compensa2on
Experts
a
free
networking
group.
Dan
is
frequently
requested
as
a
dynamic
and
humorous
speaker
covering
compensa2on
and
mo2va2on
topics.
Connect
with
him
on
LinkedIn
or
follow
him
on
TwiSer
@performensa2on.
LOCATION: DATE:
All
ar2cles
authored
by
Dan
Walter
President
and
CEO
Performensa2on
Consul2ng,
LLC
514
Precita
Ave,
Suite
100
San
Francisco,
CA,
94110
415.625.3406
(direct/mobile)
|
415.821.9883
(fax)
dwalter@performensaJon.com
|
www.performensaJon.com
www.compensaJoncafe.com
|
www.linkedin.com/in/danwalter
©
2011
PerformensaJon
ConsulJng
LLC.
All
Rights
Reserved