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Communicating Executive Pay

It is critical that employees feel that the process by which their compensation is developed is fair. Effectively communicating the decisions and rationales for those decisions is an important way in which employees can build trust that their employers are making good decisions for all concerned. Line managers play an important role in this process, but HR staff must also take an active role. One issue that often becomes problematic in this process is that of executive pay. Since the amount of executive compensation is widely known, particularly for publicly traded companies, that information may become an issue when a company communicates its pay policy to employees. In this video, you will see a negotiation session between Katherine Knudson, VP of Production at JBL Publishing, and Alicia Jackson, a union representative for JBL employees.

Click the $$ button to watch the video. Then, answer the questions that follow.

If top executive bonuses seem unrelated to organization performance, JBL employees

Multiple Choice

probably won't care.

will wonder why they don't get increases.

will blame their union.

will think they performed poorly.