Posted on 04/19/2009 7:44:07 AM PDT by TigerLikesRooster
Companies Reset Goals for Bonuses
By JONATHAN D. GLATER
When executives have a tough time meeting their performance goals, a growing number of companies are moving the goalposts for them.
Instead of paying bonuses to top executives when revenue or profits rise — less and less likely in this dark economy — companies have disclosed plans to offer awards based on other measures of success. A bonus may be more attainable if based, say, on preserving cash flow.
Xerox has dropped revenue growth as a factor in determining bonuses for its executives, the company disclosed recently in regulatory filings. The company will rely instead mostly on cash flow and secondarily on earnings per share.
“In this unstable economy it is critical that we focus on cash generation and earnings,” said Carl Langsenkamp, a Xerox spokesman, in an e-mail message. “So as the economy shifts, there are times that we reset priorities.”
(Excerpt) Read more at nytimes.com ...
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