Performance Evaluation and
Compensation
Steve Wu
11.29.2012
Objectives for today
Performance Evaluation for Business Units
Commonly used financial performance measures
Details about accounting-based performance measures
Target setting and feedback mechanisms
Performance Evaluation and Compensation for
Individuals
How to tie compensation to performance
Preferred performance measures
Executive compensation
Levers of Control Framework
Financial and Nonfinancial Measures
Firms are increasingly presenting financial
and nonfinancial performance measures for
their subunits in a balanced scorecard, and
it’s four perspectives:
1.
Financial
2.
Customer
3.
Internal business process
4.
Learning and growth