Understanding & Motivating People - Executive Perks

What to Watch for and Ask Yourself

1. Note the individual items and amount in Jack Welch's retirement package. Do you think they are excessive?
2. In the video, Jack Welch defends his retirement package. Do you agree with his reasoning ?
3. The commentators in the video stated that the compensation committee appointed by the Board of Directors determined Jack Welch's package. Do you think this structure would work for all types of companies?
4. Professor Rakesh Khurana of the Harvard Business School stated that he did not buy Mr. Welch's argument that he (Mr. Welch) "created wealth" for the company. Professor Khurana stated that Mr. Welch was "a product of the GE system” and that compensation should “focus on the system." Do you agree?
5. Note Ms. Robin Ferracone's ( Mercer Human Resource Consulting Services) discussion on the question "Can you measure how much value added an executive brings to a company?" Do you agree with her reasoning that this is a difficult and complex issue?
6. Note that the commentators in the video stated that the CFO compensation is usually determined by reviewing the compensation of other CFOs rather than comparing the CFO to other company employees. Do you think this “two tier market” is fair and equitable?