This Week's Herman Trend Alert The Consequences of Virtual Meetings

The Herman Trend Alert September 3, 2008 Executives--A Dollar Shorter As management consultants, we encourage candidates to evaluate prospective employers based on the total package of compensation, now called, "total rewards", including fringe benefits and perquisites. Recently, the compensation research firm Equilar conducted a study, detailing trends in "total rewards" for top executives of the 95 largest public companies by revenue in the United States. Equilar tracks nine major areas of perks, including corporate housing benefits, personal and home security, and country club memberships. This year's study found the median values of seven of the nine major CEO perquisites it tracks had decreased. New Securities and Exchange Commission (SEC) rules require companies to disclose perks that cost more than $10,000; previously, the threshold for reporting was $50,000. Not surprisingly, this new level of disclosure has led to a decline in upscale extras. While these top public companies are spending more in two of the study's included areas of CEO perks, in general, executives are receiving the same or fewer "goodies" than last year. From 2006 to 2007, the median value of CEO perquisites related to financial planning benefits (including other professional services such as tax preparation) declined by 9.2 percent, while expenditures for the personal use of corporate aircraft declined by 9.8 percent. The decreases reflect the concern of boards of directors to seem vigilant in their financial oversight. In fact, some companies are actually reporting more than is required by law to demonstrate their transparency. Only two areas showed increases. First, the extra cash to compensate for taxes assessed on the attributed income of fringe benefits, increased in 2007 by an unexpected 43.6 percent. Second, the median value of personal and home security benefits for these executives showed an increase of 14.4 percent. The latter really only increased due to the inclusion of Michael Dell whose company spent over $1 million on his home security system. These trends reflect that privately held organizations have an advantage over others, because there is no required reporting. Private companies will be able to "sweeten the deals" for prospective executives, without concern about SEC oversight. Private companies will surely win this war for executive talent. © Copyright 1998- by The Herman Group, Inc. -- reproduction for publication is encouraged, with the following attribution: From "The Herman Trend Alert," by Roger Herman and Joyce Gioia, Strategic Business Futurists. (800) 227-3566 or http://www.hermangroup.com. The Herman Trend Alert is a trademark of The Herman Group, Inc." BACK BY POPULAR DEMAND: RETENTION SPECIALIST PROGRAM A growing number of people have expressed an interest in attending our Employee Retention Specialist Certificate Program. We'd like to schedule on that's convenient for those who want to attend, but need your feedback to do so. Please place RETENTION SPECIALIST in the subject line and Joyce will personally call you back to schedule the workshop. Or you can call Joyce directly at 336-210-3548 (PDT this and next week). BUSINESS IS PICKING UP Most employers are unprepared. The recovery will bring a new set of challenges for employers that have been in prolonged contracted mode. They will need more skilled workers or will need now to begin to upskill their current staffs. But organizations can not engage in Strategic Workforce Planning, when they don't know how. That's where The Herman Group can help. We can help you with your "People Review"----large or small---so that you will know who you will need and when you will need them. . . and we can also guide you to the best sources for the people you will need. For more information, call Joyce at 336-210-3548 or e-mail joyce@hermangroup.com. FIND OUT WHAT YOUR EMPLOYEES REALLY THINK AND FEEL Discover what’s really going on in the hearts and minds of your employees. Our InnerViews interviewing service uses SPHRs and PHRs, certified human resource professionals to probe for the information you really need to know. Exit and Stay Interviews, as well as Why-Didn't-You-Take-Our-Offer Interviews. Call Rosalie Catalano at 937-416-7066, or read more at: http://www.hermangroup.com/retentionconnection/exit_interviews.html. Herman Trend Alerts are produced by the Herman Group, strategic business futurists, Certified Management Consultants, authors, and professional speakers. New subscribers are welcome. There is no charge for this public service. The Herman Trend Alert is received by over 30,000 subscribers in 78 countries, in addition to other websites and printed magazines. Do you enjoy receiving this weekly e-mail update? Contact us about our co-branded Trend Alert service. Click here to sign up for the Herman Trend Alert. Subscribe or Unsubscribe to weekly Herman Trend Alert View this week's Herman Trend Alert Archived Weekly Herman Trend Alerts

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