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Reveille and Hyperbole: Halogen Software Inc., the leading provider of Web-based employee performance and
talent management software
announced that it has partnered with leading learning
management solution (LMS) providers, NetDimensions and Acadia HCS. By closely
linking Halogen's offering with LMS systems, organizations can quickly identify
areas where skill development is required using Halogen eAppraisal. Then, using an
LMS system from Halogen's partners, customers can access programs that will provide
employees with appropriate training as part of their overall employee development plan.
Rada Advertising, Inc., a full-service recruitment communications agency, announced
it has partnered with EMERGE International, organizational culture experts, to launch
the Brand Enhancer an online employment brand and cultural assessment tool to clients
nationwide. To receive a complimentary copy of the resulting white paper,
please go to:
http://www.emergeinternational.com/content/ebs.html
Atlanta-based Corporate Psychology Resources announced that it has changed its
company name to TalentQuest. The new name, which has been the name of the company's
proprietary software, reflects the evolution from boutique consultancy to robust
provider of comprehensive consulting services and innovative software applications.
Capital H Group continues to make investments in strategic hires and in capital
equipment devoted to research and development, operations and customer support of
its PeopleMatter talent management software solution, expanding its ability to market
and support the product around the U.S.
TopUSAJobs.com: Guide to Top Specialty
Boards
Where Top Candidates Seek Career Opportunites
According to New ERI Economic Research Institute/CareerJournal.com Study
CEO Pay is Hot Topic in Washington
Top executives in the United States received a 28.7 % increase in their average annual cash compensation compared to the same period one year ago, according to the February 2007 Executive Compensation Index figures released by the Economic Research Institute and CareerJournal.com, The Wall Street Journal's executive career guide. These findings are calculated from year-to-date reporting as of February 2007 compared to the year-to-date in 2006.
Excessive executive compensation has suddenly become a hot topic in Washington, D.C. In his recent "State of the Economy" speech, President Bush criticized lavish salaries and bonuses for corporate executives and issued a warning for corporate boards to "step up to their responsibilities" and tie compensation packages to performance.
"Government should not decide the compensation for America's corporate executives. But the salaries and bonuses of CEOs should be based on their success at improving their companies and bringing value to their shareholders," President Bush said.
While the average company increased executive base pay by 1.69% over the past 12 months, the average company increased bonuses by 42.1%, resulting in an overall increase in average total executive cash compensation of 28.7% found the February 2007 ERI/CareerJournal.com Executive Compensation Index.
Lawmakers in Congress plan to push legislation to require shareholder approval of executive compensation plans, and a new rule from the Securities and Exchange Commission is forcing companies to provide a simplified summary of top executives' compensation in their public filings. There is also a bill before the Senate to raise the minimum wage and cap executives' tax-deferred pay packages at $1 million a year.
""Income inequality is real and continues to widen," said Dr. David Thomsen, Director, ERI Economic Research Institute. "More and more companies are creating executive compensation packages that are related to performance."
According to the nonpartisan Congressional Budget Office, the wealthiest 20 percent of households accounted for 45.4 percent of total U.S. income in 1979, but claimed 53.5 percent in 2004. Households in the bottom fifth dropped from 5.8 to 4.1 percent over the same period.
The February 2007 ERI/CareerJournal.com Executive Compensation Index results are: Base Salaries
For the highest paid executives, the average base salary stands at $1,304,664, compared to February 2006 base salary levels of $1,283,002. This reflects a 1.69% increase in base compensation.
Annual Bonus
For the highest paid executives, the average annual cash bonus is $3,668,324 compared to the prior year cash bonus levels of $2,580,139. This reflects a 42.1% increase.
Total Cash Compensation
For the highest paid executives, the average total cash compensation (base + bonus) is $4,972,988 compared to February 2006 total cash compensation of $3,863,141. This reflects a 28.7% increase in total cash compensation over 2006 levels.
Total Cash Compensation Change Since 1997
The February 2007 Average Index of Total Cash Compensation stands at 207.4, using the 1997 level as a base of 100.0. Since 1997, the Total Cash Compensation for the highest paid executives has increased 107.4%.
Compensation and Revenue Changes Since 1997
The Average Index of Corporate Revenue is 221.2, using the 1997 level as a base of 100.0. Since 1997, the Average of Corporate Revenues has increased 121.2%. This compares to the increase of 107.4% in the Index of Total Cash Compensation.
A review of the year-to-year data shows a change in pattern between 1997 and 2007. Prior to 2002, compensation was rising at a faster rate than revenues, but in more recent years, executive compensation is rising more slowly than corporate revenues. The February 2007 Index shows a continuation of this trend as 2007 begins.
The study also clearly illustrates a trend toward keeping base salaries relatively steady and providing additional compensation in the form of bonus payments. The average dollar amount of base salary for the top executives increased only 39.4% from 1997 to 2007, while annual dollar amount of bonuses increased 132.2%.
The Total Cash Compensation Index reflects data from a representative group of 45 publicly traded companies randomly selected from the approximately 6,500 companies that report compensation data to the Securities and Exchange Commission (SEC). The Index has tracked pay for the highest paid executive in this group of companies since 1997.
To view the complete report on the February 2007 Executive Compensation Index, please visit www..erieri.com and click on News Room at the bottom of the page.
About CareerJournal.com CareerJournal.com is The Wall Street Journal's award-winning career site targeted to executives, managers and professionals.
About ERI ERI Economic Research Institute is a leader in compensation and performance metric information. Based in Redmond, Washington, ERI provides salary survey and cost-of-living research reports and software to over 15,000 organizations worldwide. With information gathered from online surveys and an extensive survey library, ERI provides subscribers with assessments on salary, relocation, the cost of living, and executive compensation. ERI's data covers the United States, Canada, and the United Kingdom. Its industry-leading Executive Compensation Assessor® software reports executive cash compensation based on information from private executive pay surveys, as well as publicly-reported information for 6,500 US, 1,150 Canadian, and 2,300 UK and EU publicly-traded organizations. For analysis of executive pay in tax-exempt organizations, see ERI's Nonprofit Comparables Assessor™ software, from the ERI database of 19,000,000 measures from over 200,000 organizations. Visit www.erieri.com to learn more about ERI and to review its other talent management and compensation indices.
Strategic E-HR Conference
Using Technology for Comprehensive Talent & Performance Management
February 28 – March 1, 2007
Coronado Island Marriott
San Diego, CA
$2,195
Agenda
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