A quick reference for all articles written and published by Performensation for the period January 1, 2012 - June 30, 2012. Most of these articles were written for, and published at, The Compensation Cafe (www.compensationcafe.com). Please feel free to visit there to view recent articles. Use the search term "Performensation" to find specific articles. You can also contact Dan Walter directly at 415-625-3406, dwalter@performensation.com if need assistance with compensation issues.

1. JANUARY-­‐JUNE
2012
MUSINGS ON COMPENSATION AND PERFORMANCE
LOCATION: COMPENSATION
CAFE DATE: JUNE
19,
2012
Execu&ve
Compensa&on
Contradic&on:
Differen&ate…But
Don’t
Innovate?
A
recent
ar=cle
in
London’s,
The
Telegraph
“Overhaul
the
role
of
pay
advisers,
urges
Lord
Myners”,
pushes
for
more
accountability
on
the
part
of
the
advice
provided
by
execu=ve
compensa=on
and
remunera=on
consulta=ons.
At
issue
are
recent
pay
packages
that
met
with
shareholder
ire,
including
those
at
Barclays
and
Cookson
Group.
At
both
companies,
CEOs
had
large
compensa=on
packages
approved
by
their
MORE...
LOCATION: COMPENSATION
CAFE DATE: JUNE
5,
2012
Compensa&on
Archery:
Aim
for
the
Middle
and
Adjust
as
Required?
Archery
is
an
interes=ng
sport.
Great
archers
hit
the
center
of
the
target
nearly
every
shot.
For
those
of
you
who
have
never
shot
a
bow
and
arrow,
you
might
be
surprised
that
to
hit
the
target
you
have
to
aim
somewhere
else.
Some=mes
you
must
adjust
for
the
wind.
Other
=mes
you
must
adjust
for
al=tude.
Even
on
the
calmest
days
at
sea
level
you
need
to
aim
higher
than
the
target,
just
to
account
for
gravity.
A
key
aspect
of
archery
is
that
you
perform
in
solitary
manner.
You
stand
s=ll,
MORE...
LOCATION: COMPENSATION
CAFE DATE: MAY
21,
2012
Like
The
Auto
Industry,
Compensa&on
Must
Create
More
Hybrids
I
read
a
recent
ar=cle
that
discussed
the
annual
Rotman
Design
Challenge.
The
compe==on
pits
teams
from
Design
and
MBA
programs
to
determine
the
value
of
design
methods
in
business
problem
solving.
This
got
me
to
thinking
about
the
eternal
compensa=on
debate
of
program
design,
versus
business
strategy
(vs.
communica=on.)
The
argument
is
whether
design
is
more
or
less
important
than
understanding
the
“business
data”
and
whether
both
of
these
are
trumped
by
MORE...
LOCATION: COMPENSATION
CAFE DATE: MAY
8,
2012
What
Are
Shareholders
Really
Saying
on
Pay?
“Danny,
if
I
have
to
tell
you
one
more
4me
to
stop
jumping
on
the
bed,
you
are
going
to
get
it!”
The
warning
is
not
enough
and
Danny
jumps
on
the
bed
again.
“Danny,
next
4me
you
jump
on
the
bed
I’m
taking
away
your
allowance.”
Shareholders
have
become
much
like
lenient,
but
frustrated
parents.
This
is
how
investors
seem
to
be
using
Say
on
Pay
(SOP).
When
you
look
at
their
SOP
MORE...

2. JANUARY-­‐JUNE
2012
MUSINGS ON COMPENSATION AND PERFORMANCE
LOCATION: COMPENSATION
CAFE DATE: APRIL
26,
2012
Great
Compensa&on
Pros
are
Like
Swimmers
not
Runners
I
recently
had
a
medical
issue
that
put
me
out
of
commission
for
a
few
weeks.
Although
this
gave
me
some
=me
to
reflect
and
catch
up
with
friends
and
colleagues,
it
also
made
me
realize
that,
like
nearly
everyone
reading
this
ar=cle,
I
really
didn’t
have
the
=me
to
put
my
work
on
hold.
That
is
when
I
realized
that
being
compensa=on
professional
is
ocen
like
being
an
open
ocean
swimmer.
Last
year
a
friend
came
out
to
visit
San
Francisco
so
her
12
year-­‐old
could
par=cipate
MORE...
LOCATION: COMPENSATION
CAFE DATE: APRIL
4,
2012
5
Best
Prac&ces
for
Driving
Condi&ons
and
Compensa&on
Programs
Similar
to
when
we
are
driving,
compensa=on
professionals
must
be
acutely
aware
of
the
condi=ons
around
us
when
we
want
to
implement
change.
When
the
weather
is
nice
and
the
roads
are
dry,
we
can
speed
to
our
des=na=on
with
confidence
that
our
vehicles
will
predictably
go
where
directed.
When
it
gets
a
bit
wet,
we
take
a
bit
more
care
and
slow
down.
It
may
take
a
liele
longer,
but
we
know
we
will
reach
our
des=na=on.
The
real
trick
is
gefng
someplace
when
the
roads
are
icy.
MORE...
LOCATION: COMPENSATION
CAFE DATE: MARCH
22,
2012
The
Top
4
Risks
in
Pay
for
Performance
Pay
for
Performance,
("P4P"
for
us
cool
compensa=on
pros)
is
all
the
rage.
Those
of
you
who
read
my
pos=ngs
regularly
know
that
I’m
a
big
proponent
of
performance-­‐
based
compensa=on,
in
its
many
forms.
Despite
being
a
big
supporter,
or
perhaps
because
of
it,
I
think
its
important
to
discuss
the
major
risks
involved
with
these
programs.
(If
you
deal
with
this
issue
frequently,
you
might
want
to
skip
to
#4.)
1.
Incorrect
Metrics
MORE...
LOCATION: COMPENSATION
CAFE DATE: MARCH
12,
2012
Execu&ve
Compensa&on:
The
Poli&cal-­‐Taxa&on
Conspiracy
We
hear
the
cries
every
day.
“Execu=ves
make
too
much
money.
Let’s
raise
their
taxes!”
“Execu=ves
are
our
job
creators.
Let’s
cut
their
taxes!”
Perhaps
key
members
of
both
sides
of
this
argument
are
keeping
the
focus
on
compensa=on
levels
to
deflect
from
where
taxes
and
poli=cal
contribu=ons
come
from.
Are
there
underlying
reasons
for
poli=cians
to
avoid
strong
support
for
performance-­‐based
compensa=on?
In
this
elec=on
season,
we
are
all
aware
that
the
large
contributors
to
poli=cal
races
MORE...

3. JANUARY-­‐JUNE
2012
MUSINGS ON COMPENSATION AND PERFORMANCE
LOCATION: COMPENSATION
CAFE DATE: FEBRUARY
29,
2012
Follow
the
Leader
is
Dangerous,
but
So
is
Being
the
Leader
As
children,
we
play
Follow
the
Leader
with
the
goal
of
fifng
in.
In
this
game,
kids
will
do
whatever
the
person
in
front
of
them
does.
I
have
actually
seen
kids
fall
down,
just
because
the
person
in
front
of
them
tripped
and
fell.
As
adults,
we
learn
that
to
be
a
leader,
you
must
worry
less
about
fifng
in
and
more
about
doing
what
is
right
for
a
given
situa=on.
As
compensa=on
professionals,
we
are
constantly
asked
to
build
a
balance
between
MORE...
LOCATION: COMPENSATION
CAFE DATE: FEBRUARY
13,
2012
Is
it
Time
to
Change
the
Equity
Compensa&on
Paradigm?
Even
with
the
explosion
in
performance-­‐based
equity,
most
equity
compensa=on
plans
look
very
much
like
they
did
almost
twenty
years
ago.
Stock
op=ons,
restricted
stock
unit
and
employee
stock
purchase
plans
would
be
familiar
to
a
=me-­‐traveler
from
1995.
The
biggest
differences
are
in
the
size
of
the
payouts
and
that
many
par=cipants
receive
equity
as
an
addi=on
to
base
and
bonus
pay,
instead
of
as
a
replacement
for
some
of
it.
The
similari=es
now
and
then
are
almost
too
numerous
MORE...
LOCATION: COMPENSATION
CAFE DATE: FEBRUARY
1,
2012
Where
in
the
World
is
Carmen
San
Diego’s
Equity
Compensa&on?
Some
of
you
may
remember
the
video
game
and
game
show
“Where
in
the
World
is
Carmen
San
Diego”
(WITWICS.)
It
was
very
popular
more
than
a
decade
ago.
The
goal
of
the
game
was
to
find
the
villain,
Carmen
San
Diego,
based
solely
on
key
facts
about
different
loca=ons
around
the
world.
The
players
had
to
know
the
specific
country
differences
that
made
it
possible
to
iden=fy
each
unique
loca=on
and
capture
Carmen.
Compensa=on
around
the
world
is
as
unique
in
size,
design
and
structure
as
MORE...
LOCATION: COMPENSATION
CAFE DATE: JANUARY
23,
2012
Don’t
Tell
Me
I’m
Great
If
I’m
Not!
I
have
both
friends
and
clients
who
have
been
struck
by
an
unfortunate
dilemma.
I
have
a
couple
of
friends
who
have
been
told
one
thing
for
months,
and
perhaps
years,
only
to
find
out
that
the
truth
they
knew
wasn’t
the
“real”
truth.
I
have
clients
who
need
to
realign
pay
for
people
who
have
been
told
they
were
top
performers
when,
in
fact,
they
are
less
than
adequate.
In
both
cases
it
seems
more
like
senior
managers
were
trying
to
be
nice,
rather
than
sneaky.
MORE...

4. JANUARY-­‐JUNE
2012
MUSINGS ON COMPENSATION AND PERFORMANCE
LOCATION: COMPENSATION
CAFE DATE: JANUARY
13,
2012
Execu&ve
Compensa&on
and
the
Great
Wizard
of
Oz
Execu=ve
compensa=on
holds
as
much
mystery
and
magic
as
the
Great
Wizard
of
the
Emerald
City.
Of
course,
if
the
curtain
were
to
be
pulled
back,
the
real
magic
would
be
found
in
how
a
lack
of
informa=on,
combined
with
fear
and
imagina=on,
have
colored
the
pay
of
all
execu=ves
with
the
same
brush.
Remember
that
when
Dorothy
and
Toto
met
the
wizard
he
was
just
as
unhappy
and
scared
as
they
were.
I
find
it
amusing
and
frustra=ng
that
there
is
so
much
misinforma=on
about
execu=ve
MORE...
LOCATION: COMPENSATION
CAFE DATE: JANUARY
4,
2012
Are
Your
Performance
Reviews
like
an
Annual
Physical?
I
don’t
know
anyone
who
looks
forward
to
their
annual
physical.
There
is
very
liele
about
the
process
that
exudes
posi=vity.
Nearly
all
of
us
know
that
we
could
have
eaten
beeer,
exercised
more
or
paid
beeer
aeen=on
to
our
health.
Even
those
in
the
best
of
health
dread
the
thought
that
this
might
be
the
year
that
something
“serious”
may
be
found.
The
poten=al
“big-­‐=cket”
items
overwhelm
the
progress
that
may
have
occurred
at
other
points
in
the
year.
The
process
can
also
a
bit
too
personal,
MORE...
Dan
Walter
is
the
President
and
CEO
of
Performensa=on
an
independent
compensa=on
consul=ng
firm
focused
on
the
needs
of
private
and
public
companies.
Dan’s
unique
perspec=ve
and
exper=se
includes
equity
compensa=on,
execu=ve
compensa=on,
performance-­‐based
pay
and
talent
management
issues,
Dan
is
on
the
board
of
the
Na=onal
Center
for
Employee
Ownership,
a
partner
in
the
ShareComp
virtual
conferences
and
the
founder
of
Equity
Compensa=on
Experts
a
free
networking
group.
Dan
is
frequently
requested
as
a
dynamic
and
humorous
speaker
covering
compensa=on
and
mo=va=on
topics.
Connect
with
Dan
on
LinkedIn
or
follow
him
on
Quora
or
Twieer
@performensa=on.
Publica=ons
include:
“The
Decision
Makers
Guide
to
Equity
Compensa=on”,
“If
I’d
Only
Know
That”,
“GEOnomics
2011”,
“Equity
Alterna=ves”
and
“Communica=on:
The
Key
to
Winning
the
Rela=ve
TSR
Race”.
All
ar&cles
authored
by:
Dan
Walter,
President
and
CEO
Performensa&on
Consul&ng,
LLC
514
Precita
Ave,
Suite
100,
San
Francisco,
CA,
94110
415.625.3406
(direct/mobile)
|
Toll-­‐free
877-­‐803-­‐9255,
ext
700
|
415.821.9883
(fax)
dwalter@performensa&on.com
|
www.performensa&on.com
www.compensa&oncafe.com
|
www.linkedin.com/in/danwalter
©2012
Performensa=on
Consul=ng
LLC.
All
Rights
Reserved