I refer to the article, 'Do CEOs deserve the pay they get?' (April 5).
The bonuses of chief executive officers should be pegged to not just business performance.
A CEO is the de facto caretaker of the company. In addition to pegging their CEOs' bonuses to the top and bottom lines (short-, mid- and long-term), board directors should consider key performance indicators (KPIs) such as staff welfare and morale, enhancement of the company's reputation in the market, and nurturing of talent and succession planning.
Only when we have more mid- to longer-term KPIs would CEOs focus more on bringing up their 'ward' as a healthy, balanced and well-respected entity, rather than merely 'I brought in so much money for the company, so pay me what I deserve'.
Human resource (HR) directors, this is a grand opportunity for you to play a much more strategic role in your organisation.
You would do well to be a change agent and suggest to your board members what should constitute as KPIs for your CEO's bonus payments.
Only when you get much more involved at the board level will you gain the necessary respect to play a meaningful role as an HR director.
Paul Heng
Managing Director
NeXT Career Consulting Group, Asia
