Fair Pay Fair Play: Summary Review
This is a summary review of Fair Pay Fair Play containing key details about the book.
What is Fair Pay Fair Play About?
"Fair Pay Fair Play" by Robin A. Ferracone is a book that offers insights and guidance on how to design fair and effective executive compensation programs that align with business strategy and drive long-term value creation. Drawing on her extensive experience as a compensation consultant, Ferracone provides a comprehensive framework for designing compensation programs that are both fair and effective, taking into account factors such as market trends, company culture, and shareholder expectations. The book provides practical guidance on topics such as setting executive pay levels, designing performance-based incentive plans, and managing executive compensation risks, as well as insights into the latest trends and best practices in the field. Ferracone also addresses the broader societal and ethical implications of executive pay, emphasizing the importance of transparency and accountability in ensuring that executive compensation is aligned with long-term shareholder interests. Overall, "Fair Pay Fair Play" is a valuable resource for anyone involved in designing or managing executive compensation programs, offering practical advice and insights on how to balance the need for fairness and effectiveness in compensation design.
Fair Pay, Fair Play offers organizations, including board members, executives, HR and compensation professionals, and investors a new way to think about executive compensation; suggests a model for establishing common standards of fairness and propriety; and shows how to develop a more efficient market for executive talent. This book adheres to the overriding objective: "executives should be paid on the basis of how well they perform for their shareholders, relative to the external market, within contemporary standards of fairness and propriety."
Summary Points & Takeaways from Fair Pay Fair Play
Some key summary points and takeaways from the book include:
* Align executive pay with company strategy: Executive compensation should be closely aligned with company strategy, including short-term and long-term goals.
* Use a balanced scorecard approach: A balanced scorecard approach, which incorporates a range of financial and non-financial performance measures, can help ensure that executive pay is aligned with company performance.
* Incorporate risk management: Executive compensation plans should incorporate risk management, by aligning executive pay with the company's risk appetite and ensuring that incentives do not encourage excessive risk-taking.
* Consider external factors: External factors, such as market conditions and industry benchmarks, should be taken into account when designing executive compensation plans.
* Engage stakeholders: Executive compensation plans should be designed with the input of stakeholders, including shareholders, employees, and other key stakeholders.
* Communicate effectively: Communication is key to ensuring that executive compensation plans are well-understood and accepted by stakeholders. Effective communication can help build trust and support for the compensation plan.
* Overall, "Fair Pay, Fair Play" is a book that emphasizes the importance of aligning executive compensation with company strategy, using a balanced scorecard approach, incorporating risk management, considering external factors, engaging stakeholders, and communicating effectively. By following these principles, companies can design fair and effective executive compensation plans that help attract and retain top talent, while also aligning with the company's goals and values.
Who is the author of Fair Pay Fair Play?
Robin Ferracone is the founder and Chief Executive Officer of Farient Advisors, executive compensation and performance advisory firm.
Book details
- Print length: 304 pages
- Genre: Business, Leadership
What are the chapters in Fair Pay Fair Play?
Chapter 1: Same Problems, Different Context
Chapter 2: Shareholder Value: A Good Indicator of Long-Term Success
Chapter 3: The Anatomy of Performance-Adjusted Compensation (PAC)
Chapter 4: The Performance and Pay Alignment Zone
Chapter 5: The Alignment Report
Chapter 6: From Maligned to Aligned
Chapter 7: Patterns of Misalignment
Chapter 8: The Root Causes of Misalignment
Chapter 9: Aggressive Target Pay
Chapter 10: Turbo-Charged Upside
Chapter 11: Conventional Goal-Setting
Chapter 12: Short-Term Gain; Long-Term Pain
Chapter 13: Flattening the Curve
Chapter 14: Ad Hoc Decisions
Chapter 15: Decision-Making Influences
Chapter 16: Creating and Maintaining Alignment
* The editor of this summary review made every effort to maintain information accuracy, including any published quotes, chapters, or takeaways. If you're interested in furthering your personal growth, you may want to explore my list of favorite self-improvement books. These books, which have had a significant impact on my life, are carefully curated and come with summaries and key lessons.
Chief Editor
Tal Gur is an author, founder, and impact-driven entrepreneur at heart. After trading his daily grind for a life of his own daring design, he spent a decade pursuing 100 major life goals around the globe. His journey and most recent book, The Art of Fully Living, has led him to found Elevate Society.
