First element is to establish clear objectives to be

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first element is to establish clear objectives to be achieved by the leader over some time and should be aligned with organizational goals. Goals, included in this element should consist of job description, goals based on achieving job duties based on description, project goals, goals reached based on the achievement of a
What Do Proxy Statements Reveal? 14 project objective, behavioral goals, success based on how things get accomplished, and stretch, the accomplishment of the leader expanding his/her KSAs. Also, these goals should be specific, measurable, attainable, relevant, and time-bound (SMART). Element two consists of the performance review itself. This type of study should be designed to assess the leaders progress toward goals, his/her strength, and weakness. It should be conducted and recorded regularly so the company can effectively evaluate the leader's contribution and career development (p.1) Furthermore, to be effective, it should include a performance feedback process that is measured against clear and specific goals and a method for acknowledging the outcomes between the CEO and the board. Lastly, during element three, the board and the CEO need to develop a performance improvement plan which documents performance expectations (p.1.). In conclusion, based on how the CEO is assessed, the clear outlines stated in the proxy statement and the methods used to evaluate the CEO’s performance, it can be concluded that the factors used to assess the CEO’s performance is adequately described and is aligned with the company’s strategy. Compensation During the 2019 fiscal year, Nike’s CEO's total compensation was $13,968,022. When compared to other similar-sized competitor organizations, this pay is market-competitive. In comparison, Coke-Cola’s CEO total compensation was $16,132,480 (coke-colacompany.com, 2020), Kelloggs’s, CEO total compensation was $9,989,992 ( investor.kelloggs.com, 2019), and P&G CEO
What Do Proxy Statements Reveal? 15 total compensation was $9,549,309 (pginvestor.com, 2018). Also, when you exam each company’s philosophy regarding compensation, each tends to follow the market trends for executive compensation. These trends, according to a Harward forum on “Trends in Executive Compensation,” generally consist of four components, annual base salary, annual incentive tied to short-term performance measure, long-term incentives, and benefits (Kesner, M., Sim, E., & Tays, T., 2019). However, in a recent article by Yahoo Finance, they find that Nike’s CEO doesn’t deserve to earn additional compensation until he increases their earnings per share (EPS) and total returns. When examing the growth, Nike has reduced its (EPS) by an average of 13% per year over the last three years. However, its revenue is up 9.7%, and overall shareholder investment over three years has seen a 52% return on investment (finance.yahoo, 2019). Based on this, some may disagree with this article's findings. Therefore, when you take into account the current trends in executive compensation programs, Nike’s non-executive compensation program being similar to its executive thus providing an ethical aspect to it, the company’s strategies and objectives and the risk percentage of the

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