Finding a candidate in your company’s salary range

Do you need to find a candidate within a certain salary range, and if so, are you prepared for the global executive search needed to find him or her? Your search has to be conducted with this in mind.

One trend that companies have adopted is the "pay for performance" model, where executive compensation is tied to the resulting success of the business. However, data from the company Equilar, recently cited in a Bloomberg Businessweek piece, suggest that this is not always effective.

200 CEOs' performances were analyzed as part of this research and placed on a graph, along with average stock return. The authors of the article, Eric Chemi and Ariana Giorgi, note that there is no real correlation: Instead, the data points look scattered and random.

"If 'pay for performance' was really a factor in compensating this group of CEOs, we'd see compensation and stock performance moving in tandem," they write. "The points on the chart would be arranged in a straight, diagonal line."

This doesn't mean that your business should reject such a plan completely. The push for pay-for-performance is still going strong, and finding a CEO who has experience under this payment plan is more likely to be a benefit for your company if that is your preference. 

The important thing is that your company finds an executive who works well and shares your board's vision. Use an executive search firm to find a new CEO based on your business' culture and specific needs through a comprehensive assessment plan that begins before you even start interviewing.

Finding people is easy, but finding the RIGHT people is not. YES Partners helps companies FIND the right people – for all company functions, across many industries and globally.

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