The Dow Chemical corporate-wide objective was to devise a reward and recognition initiative designed to motivate Dow’s 45,000 person, international workforce while maintaining program consistency on a global scale.
There is perhaps no subject debated more frequently (or as vehemently) by incentive program practitioners and their clients than the value of tangible, non- monetary (also referred to as non-cash) incentives versus cash.
As Board Compensation Committees consider and finalize executive compensation arrangements for 2009, they will seek to confirm that the company’s incentive programs are appropriately structured for the company and discourage executives from taking “excessive risk.”
What elements of performance incentive programs lead to success? What pitfalls can be avoided? When do performance-based programs generate more bang for the buck than other approaches?