Perth Leadership Institute Issues White Paper on the Recession and Compensation Strategy

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White Paper Concludes Compensation Strategy Will Need to Incorporate Behavioral Factors to Increase Effectiveness

The Perth Leadership Institute (, the industry leader in business acumen assessment and development programs, today announced that it has issued a White Paper examining the impact of the recession on compensation strategy. The White Paper argues that current compensation approaches contributed significantly to exacerbating the economic crisis and that unless the area changes, they are likely to cause similar problems in the future once the economy revives. It concludes that compensation strategy will be forced to take formal account of behavioral factors in order to reduce this problem, particularly with more senior and high-impact players. The most radical approach would also be the most effective, namely to integrate compensation strategy with development in companies, but this is a major step that many companies will balk at because of cultural differences between the two areas.

According to Dr. E. Ted Prince, Founder and CEO of the Institute, "It has become clear that many compensation approaches contributed significantly to the current crisis starting with but hardly restricted to CEO pay. Compensation strategy and practices need a radical rethink, otherwise we are likely to see the same problems recur once things get better again. Now is the time to do some fundamental strategic rethinking. Adopting behavioral approaches as the White Paper suggests would also have a very positive impact at the macroeconomic and global level"

The Perth Leadership Institute has developed innovative approaches to business acumen, compensation strategy, financial leadership styles and financial outcomes based on its research into business acumen. These form part of its business acumen assessment and development programs for managers and executives. It has developed business acumen assessment instruments, such as the Financial Outcome Assessment®, used by executives and managers to increase their financial and valuation impact.

The Perth Leadership Institute was founded in 2002 in Gainesville, Florida, by Dr. E. Ted Prince to carry out research into the linkages between behavior and individual and company financial outcomes. Its programs are targeted at executives and managers and are used for leadership and executive development, talent management and to improve individual and team financial performance at the middle and senior levels of organizations.

To obtain more information, call (352) 333 3768 x704.

Perth Leadership Institute

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Steve Levitt

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