Executive pay and performance measurement practices in the UK

Author:

Franco‐Santos Monica,Bourne Mike,Huntington Russell

Abstract

The use of performance measurement systems and the balanced scorecard has been on the increase, and there is now a trend amongst practitioners and academics to prescribe that rewards should be linked to the measurement system. However, little research has been done in this area. This paper reports the results of a recent survey of executive reward practices in large companies based in the UK. Senior HR professionals and reward specialists were approached to provide details of performance measurement and reward practices in their own organizations, and to give their opinions on the benefits of such an approach.

Publisher

Emerald

Subject

Organizational Behavior and Human Resource Management,General Business, Management and Accounting

Reference17 articles.

1. Banker, R.D., Potter, G. and Srinivasan, D. (2000), “An empirical investigation of an incentive plan that includes nonfinancial performance measures”, Accounting Review, Vol. 75 No. 1, January, pp. 65‐92.

2. Eccles, R.G. (1991), “The performance measurement manifesto”, Harvard Business Review, January‐February, pp. 131‐7.

3. Frigo, M.L. and Krumwiede, K.R. (1999), “Balanced scorecards: a rising trend in strategic performance measurement”, Journal of Strategic Performance Measurement, February‐March, pp. 42‐8.

4. Gates, S. (1999), Aligning Strategic Performance Measures and Results, The Conference Board, New York, NY.

5. Ho, S.‐J.K. and McKay, R.B. (2002), “Balanced scorecard: two perspectives”, The CPA Journal, Vol. 72 No. 3, pp. 20‐5.

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