tag:blogger.com,1999:blog-8731850749845921666.post5351142571632656814..comments2008-09-10T18:12:35.825-07:00Gopi Padakandlahttp://www.blogger.com/profile/09554765926145106015noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8731850749845921666.post-47407330494456362992008-09-10T18:12:35.825-07:002008-09-10T18:12:35.825-07:00Hi Sean,<BR/><BR/>I totally understand your concern. <BR/><BR/>I agree that meager budgets in difficult economic times also mean doing a lot with few resources. I strongly believe that only those organizations that know how to get best from their people survive this economic storm. P4P is powerful enabler of this strategy.Gopi Padakandlahttp://www.blogger.com/profile/09554765926145106015noreply@blogger.comtag:blogger.com,1999:blog-8731850749845921666.post-2425821508492877192008-09-10T07:48:37.455-07:002008-09-10T07:48:37.455-07:00Hi Darren,<BR/><BR/>You are welcome. <BR/><BR/>In my opinion a well designed pay-per-performance plan rewards long term performance by promoting shareholder value and at the same time recognizes the accomplishment of goals towards long-term performance. Shareholding (restricted stocks, long-term stock options) is a proven mechanism link pay to long-term performance, especially for executive compensation. The short-term incentives are still required to provide immediate gratification by recognizing the individual contributions and/or accomplishment of milestones, say annual profit targets, towards strategic objectives. This typically includes cash component.Gopi Padakandlahttp://www.blogger.com/profile/09554765926145106015noreply@blogger.comtag:blogger.com,1999:blog-8731850749845921666.post-4309747165260931672008-09-09T16:10:54.637-07:002008-09-09T16:10:54.637-07:00Hi Gopi<BR/>I believe pay for performance was an idea for yesterday. Today companies basically hold unto people not by paying them, but saying the market is bad so stay with me. More often in todays economy and state laws, how do companies reduce their workforce. Companies are trying run leaner and meaner and its at cost to its employees, including good performers. Jobs are outsourced and we constantly hear of layoffs, even among professionals, today we are in an uncertain economy with new paradigms.Sean O'Cairdehttp://www.blogger.com/profile/14169105056533027266noreply@blogger.comtag:blogger.com,1999:blog-8731850749845921666.post-85326160757825732272008-09-09T11:39:18.829-07:002008-09-09T11:39:18.829-07:00Hi Gopi<BR/><BR/>Thanks for the mention here, much appreciated. Interesting how you apply it here to pay-for-performance.<BR/><BR/>Your first point is on the money! Communication and transparency... quite difficult things to do but I believe also holding the most real long-term value in developing the relationship.<BR/><BR/>A question for you - how do you weigh up pay-for-performance vs actual shareholding? [ie is shareholding a better and more real long-term incentive than performance pay?] Would like to hear your views.<BR/><BR/>Take care.Darrenhttp://www.blogger.com/profile/06754655807460068112noreply@blogger.com