Originally Posted by
WillowRun 6-3
Why not adapt this form? The executive gets something under the contract for taking on a huge job, but the biggest parts of the financial package all are deferred, depending upon achievement of defined results.
But isn't that exactly the current situation - and the problem? Those "results" are almost always defined in financial terms: increased earnings, higher share prices, etc. Those quantitative measures drive behaviour that leads to offshoring, contracting out, share buybacks, etc., which in the near term may have positive financial benefits, but is ultimately detrimental to long-term success. Quantitatively measuring things like engineering prowess and corporate reputation is much tougher. I bet having a claw-back clause that cancelled half of your deferred incentives if there was a "quality control" failure under your watch (such as fuselage plug unexpectedly departing mid-flight) would certainly drive different leadership behaviour. Unfortunately, I just can't see corporate America adopting (or a prospective applicant accepting) such terms.