Innovative Ideas in Compensation

The Wall Street Journal ran a story on July 7 featuring NCEO member and ESOP company Skyline Construction. The San Francisco-based company lets its 15 top managers decide how much of their pay will be fixed versus incentive-based. Most have chosen incentive pay. The plan is structured so that those choosing incentive pay will normally do better in return for taking the risk.

Over the years, we have encountered a number of companies offering innovative practices in compensation. For instance, Netflix lets employees choose between getting options or other forms of compensation. HCSS, a fast-growing, industry-leading software company that serves the construction industry has a three-tier reward system that gives all employees short-term incentives through a cash bonus program, medium-term incentives through stock appreciation rights (SARs), and long-term rewards through an ESOP. HCSS was a 2008 NCEO/Beyster Institute Innovations in Employee Ownership Award winner.