Exec Comp Not Performance Based

June 17, 2002 (PLANSPONSOR.com) - Executive compensation appears to be unconnected to employees' personal performances or leadership competencies, a new survey by Buck Consultants finds.

The survey, titled “People, Competencies and Performance,” revealed that while 68% of participants described their companies as at least moderately performance-driven, 90% admitted that when it comes to pay increases, they make little attempt to differentiate between mediocre and top performers.

In addition, not a single respondent reported giving a zero increase to under-performing executives. Meanwhile, 13% said there was a direct link between performance on critical issues and executive compensation.

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Also,

  • 64% of respondents said that company or unit financial performance continues to drive executive pay,
  • while 10% said leadership competencies drive pay, and
  • 23% said that individual executive performance was a key factor in pay decisions

The survey sample comprised 70 executives.

Jefferson Pilot Offers Critical Care Coverage

June 14, 2002 (PLANSPONSOR.com) - Benefit Partners is offering a new critical illness benefit, which generates a payout when an employee contracts a critical illness such as a heart attack or stroke and meets a survival period.

Benefit Partners, the employee benefits division of Jefferson Pilot Financial, is making its Critical Assistance Recovery Enhancement (CARE) product available as an optional benefit when purchased with Jefferson Pilot’s true group or voluntary long-term disability plans.

According to a company announcement, covered critical illnesses or ailments include a:

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  • heart attack
  • life-threatening cancer
  • major organ transplant
  • kidney failure
  • stroke

The company announcement said the payout goes to the insured employee without restrictions as to how it can be spent. The money can be used to help fill insurance coverage gaps, provide protection for incidental expenses incurred because of the illness, or to protect retirement savings, the company said.

Employers choose the CARE benefit amount for their employee population – the choices are a lump sum equal to three, six or 12 times the employee’s gross monthly long-term disability benefit up to a maximum benefit of $25,000.

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