White Paper on the Future of Compensation Strategy Issued by Perth Leadership Institute

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White Paper concludes compensation strategy in companies will need to incorporate behavioral factors to meet federal policy goals.

The Perth Leadership Institute (http://www.perthleadership.org/), the industry leader in business acumen assessment and development programs, today announced that because of the Federal Government's recent move into regulation of compensation at private companies, it has re-issued its White Paper on the future of compensation strategy because of its increased relevance in this new and radically changed policy environment. It can be found at http://www.perthleadership.org/documents/WPCompensation4_09Final.pdf. The White paper was originally published in April, 2009,

The White Paper argues that current compensation approaches contributed significantly to exacerbating the recent economic crisis and that unless these approaches change, they are likely to cause similar problems in the future as the economy revives. The White Paper 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.

According to Dr. E. Ted Prince, Founder and CEO of the Institute, "It has become clear that some compensation approaches contributed significantly to the current crisis starting with but hardly restricted to CEO pay. Compensation strategy and practices need a radical re-think, otherwise we are likely to see the same problems recur once things get better. With the Federal Government now getting into the act, now is the time to do some fundamental strategic rethinking. Adopting behavioral approaches, as the White Paper suggests, provides a new approach to thinking about how to craft compensation strategy in the future in ways that address the legitimate concerns reflected in the Federal Government's activist policy stance in this area"

The Perth Leadership Institute has developed innovative approaches to leadership styles and financial impacts 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 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.

Perth Leadership Institute
(352) 333-3768


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Ted Prince